Nifty 8769 /Sensex 28334/ Bank Nifty 19672
34 Advances /16 Declines/ 1 Unchanged
“Nifty ends at 8769 post RBI monetary policy; mid caps at new high”
Equity benchmarks as well as broader markets remained marginally higher in afternoon trade as investors eagerly waited for RBI monetary policy.
After a surprise move by the RBI, the market has ended higher. The Sensex closed up 91.26 points or 0.3 percent at 28334.55 and the Nifty was up 31.05 points or 0.4 percent at 8769.15. About 1686 shares have advanced, 1158 shares declined, and 143 shares are unchanged.
ONGC, GAIL, SBI, Tata Steel and Tata Motors were top gainers while Coal India, M&M, L&T, HUL and Axis Bank were lower in the Sensex.
RBI cuts repo rate by 25 bps to 6.25%
The decision of the monetary policy committee (MPC), headed by new RBI governor Urjit Patel, will likely cheer business leaders and households as cheaper loans will aid investment and spending.
The Reserve Bank of India (RBI) on Tuesday cut its key lending—the repo rate—by 25 basis points to 6.25 percent, as a newly set up panel felt that inflation levels were low enough to reduce loan rates.
The decision of the monetary policy committee (MPC), headed by new RBI governor Urjit Patel, will likely cheer business leaders and households as cheaper loans will aid investment and spending.
Takeaways from the RBI policy document
Despite global markets having shrugged off the Brexit vote, an uneasy calm prevails on uncertainty about the stance of monetary policy of systemic central banks. Global growth slowing more than anticipated through 2016 so far. Brexit, banking stress in Europe, China debt, rising protectionism and diminishing confidence in monetary policy key risks.
Our Call To Buy Bank Nifty (FUT) around 19650 proved great as it flared and made High of 19850 before settling at 19808 on closing. We Booked part profit above 19700.
Our Call To Buy HDIL (cash) around 81.90 proved great as it flared and made High of 84 before settling at on closing 83.25 on closing. We Booked profit at 83.95
Our Call To Buy Indiabull Housing Finance 860 CE (Option) around 27—25 proved great as it flared and made High of 40.35 before settling at 38.75 on closing. We Booked part profit around 33—35.
Now what to expect today???
Nifty and Bank nifty future levels
Nifty future has immediate support at 8760 levels and resistance is at 8830.
On close below 8760 will see sharp downside panic till 8680---8630 and then to 8550 mark. More and more downside panic will initiate only close below 8550 mark.
Else a move and sustain above the level of 8830 will take Nifty future to 8880--8930 and then to 9000 mark.
Bank Nifty has immediate support at 19600 and hurdle is intact at 19850.
Break and sustain below 19600 will take to 19350---19200 and then to 18900 mark in days to come, else could test it resistance level of 19850.
Above 19850 it can touch 20100---20250 mark.
Trade with levels only.
Today's Top Pick
(Tiny Stop loss) Axis Bank... Sell it around 548---550 with stop loss of 555. Break and close below 540 will take to 525---510 mark.
