The RBI Monetary Policy Committee is widely expected to keep the repo rates unchanged - Daily Market Update - Equity 8 Dec 2023 | Globe Capital Market LTD.
08-Dec-2023
The RBI Monetary Policy Committee is widely expected to keep the repo rates unchanged – Daily Market Update – Equity 8 Dec 2023

The Reserve Bank of India’s Monetary Policy Committee is widely expected to keep the repo rate unchanged at its review meeting but is likely to adopt a cautious stance regarding rising threats of food inflation and excess liquidity in the system. While the market participants are keenly awaiting the RBI’s revised inflation and GDP forecasts, they are also keeping a close watch on any additional measures by the central bank to suck out the excess liquidity. The MPC has kept the repo rate unchanged at 6.5 percent in the past four monetary policy reviews, after raising the rate by 250 basis points since May 2022

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.17% to 1.37%.
  • European equity markets settled on a flat to negative note.
  • Asian equity markets are trading mix
  • GIFT Nifty is little changed, Nifty futures likely to open around 21075 levels (as on 8:30AM)

 

News highlights from across the globe

  • Markets in the Asia-Pacific region were trading lower ignoring the overnight rally in Wall Street as traders increased bets that the Bank Of Japan is nearing the end of its negative interest rates.
  • Shares in Japan fell for a second consecutive day. Japan’s GDP contracted 2.9% on year.
  • Brent crude was trading 0.34% lower at $74.05 a barrel

 

Important news updates from the domestic front

  • Rate sensitive stocks: The RBI will announce the decision on key interest rates at its Monetary Policy Committee meeting on Friday. Banking, finance, auto, housing and real estate stocks will be in focus.
  • IIFL Securities: The Securities Appellate Tribunal has set aside SEBI’s order prohibiting the company from onboarding new clients for two years and reduced the monetary penalty from Rs 1 crore to Rs 20 lakh.
  • Zomato: Softbank’s SVK Growth plans to sell a 1.1% stake in the food delivery company at Rs 120.5 apiece, Bloomberg reported.
  • Bharat Forge: The company’s unit, Kalyani Strategic Systems, proposed to acquire a majority stake in Zorya Mashproekt India. ZMI is engaged in the development of indigenous capabilities for build-ups, repairs, and overhauls of all types of gas turbine engines.
  • Container Corp signed an MoU with NTPC Vidyut Vyapar Nigam to develop solar projects at its terminals.
  • DB Realty: Unit Vanita Infrastructure’s subsidiary acquired equity shares of DB Conglomerate Realty. Post-acquisition, DB Conglomerate Realty has become a step-down subsidiary of the company.
  • Shriram Finance signed an agreement with SIDBI for co-lending to MSMEs.

 

Nifty Overview & Outlook

The benchmark Nifty index ended on a flat to negative note at 20901 levels after a highly volatile trading session.

The broader markets outperformed the benchmark as Mid cap & Small cap index rose 0.65% and 0.37% respectively against flat closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Consumer Durables was at the top of the tally, gained over 1% followed by Healthcare, Oil & Gas, Media and Pharma indices that rose over 0.5% each. On the other hand, FMCG and Metal index led the declines, fell 0.90% and 0.75% respectively.

Nifty index is well placed on multiple chart frame; however, possibility of some profit-taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading strategy till index is holding above 20500 levels on a closing basis.

 

Derivatives Overview & Outlook

Yesterday, on price front no significant changes was seen in all three major index whereas on open interest front long build up was seen in Banknifty futures with 1.7% increase in open interest and Nifty futures open interest increased by 6.6% while no change was seen in Finnifty futures open interest.

On the sectoral front, long buildup was seen among Infrastructure, Power, Textile, Oil & Gas and Pharma stocks whereas short buildup was seen among FMCG and Metals shares.

On options front, Nifty will start the new weekly contract with maximum positions at 21000 CE and 20000 PE and closely followed by 20900 PE.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1564 Cr in the cash segment, sold stocks futures worth Rs 2331 Cr and bought index futures worth Rs. 598 Cr. DIIs were also the net sellers in the cash segment to the tune of Rs 10 Cr only.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21160-21225; Supports 20785-20610

Banknifty – Resistances 47550-47900; Supports 46000-45450

Finnifty – Resistances 21245-21430; Supports 20700-20410

 

BANSCRIPT – BALRAMCHIN, DELTACORP, IBULHSGFIN, INDIACEM, NATIONALUM, SAIL, ZEEL

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