Nifty 8102 /Sensex 26237/ Bank Nifty 18234
17 Advances /34 Declines/ 0 Unchanged
“Disappointing RBI move drags Sensex 156 pts; Sun Pharma tanks 5%”
RBI POLICY: MPC keeps repo rate unchanged at 6.25% Wed, Keeps CRR unchanged. Leaves repo rate unchanged at 6.25%
Equity benchmarks reversed gains in last hour of trade with the Sensex falling 228 points intraday Wednesday as the Reserve Bank defied expectations of rate cut by keeping repo rate unchanged and lowered GVA estimates. However, the fall was arrested after the RBI decided to withdraw incremental CRR from December 10.
The 30-share BSE Sensex was down 155.89 points at 26236.87, and the 50-share NSE Nifty fell 41.10 points at 8102.05 after hitting an intraday low of 8077.50 and high of 8190.45. However, the broader markets outperformed as fall in Midcap index restricted to 0.16 percent.
The market is expected to be range bound after pricing in the surprise move by the RBI, say experts, adding now all eyes are Federal Reserve policy meeting that scheduled to be held on December 13-14.
"We expect more volatility going forward as commodity prices like Oil and Metals are inching up and the outlook for rupee remains lacklustre on account of Fed rate hike expectation," Vinod Nair of Geojit BNP Paribas Financial Services says.
The Reserve Bank of India today unexpectedly kept the policy repo rate under the liquidity adjustment facility unchanged at 6.25 percent and cash reserve ratio at 4 percent but the market breadth turned negative as about 1519 shares declined against 1084 advancing shares on the BSE.
“Monetary Policy: RBI keeps rates unchanged; abolishes temporary 100% CRR”
A wash with funds, banks may start cutting loan rates to productively deploy unexpected deposit surge; RBI lowers 2016-17 growth forecast by 50 basis points to 7.1 percent on demonetization effect.
The MPC also decided to restore the cash reserve ratio (CRR)—the proportion of deposits banks are required to park with the RBI—at 4%
That surge in post-demonetization liquidity had prompted the RBI to temporarily ask banks to park the entire mountain of additional cash as 100 percent cash reserve ratio (CRR) with the central bank.
Key Results Today
SAIL
MMTC Ltd
NLC India
Finolex Ind
RESULT ANALYSIS & POLL:
IMPORTANT RESULT: SAIL
TECHNICAL LEVELS: SAIL
CMP 52. SAIL has immediate resistance at 55 and Support is intact at 49
If immediate resistance of 55 is positively breached and sustained then next resistance seen around 58--&60 else it can test its support level of 49 again. Break and sustain below 49 will take it to 45—43.50 mark.
Trade with levels only.
Now what next for today??
Nifty and Bank Nifty Levels
Nifty crucial support intact at 8070 and resistance at 8190---8230
Break and sustain below 8070 will take Nifty to 8020--7980 and then to 7930 mark else it can test its resistance again.
On the other hand....
Bank Nifty has crucial support intact at 18200 and resistance at 18500.
Break and sustain below 18200 will take Bank Nifty to 17900—17500 else it can test its resistance of 18500 again. Above 18500 next resistance seen around 18800—19050 mark
Trade with levels only.
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