Nifty 8143 /Sensex 26393/ Bank Nifty 18421
31 Advances /20 Declines/ 0 Unchanged
“Sensex off day's high, Nifty fails to hold 8150; RBI policy eyed”
The NSE Nifty ended Tuesday's session on a positive note but failed to hold 8150 level due to late sell-off in private banking & financials and auto stocks. Investors remained cautious ahead of the outcome of monetary policy committee meeting tomorrow.
The 30-share BSE Sensex was up 43.66 points at 26392.76, and the 50-share NSE Nifty gained 14.40 points at 8143.15 after hitting an intraday high of Rs 8178.70 while the broader markets outperformed.
The recent recovery in the market after falling below 8000 level indicated that a 25 basis points cut in repo rate is largely priced in. Now all eyes are on commentary of the Reserve Bank of India, analysts say, adding the upside may continue if RBI cuts repo rate by 50 basis points on December 7.
"Markets would now be eyeing RBI's GVA guidance, as it could give more insight into RBI's conviction about growth," Anand James of Geojit BNP Paribas says.
Jayant Manglik of Religare Securities says, "Continuous underperformance from banking pack is keeping the uncertainty intact and we feel it'll finally be over on Wednesday i.e. December 7, with the announcement of Monetary Policy Committee's decision on key rates."
"RBI likely to cut rates by 25 bps on Wednesday: CNBC-TV18 poll"
Almost 70 percent of the people are expecting a 50 bps rate cut by March 2017. Another 75 percent believe that the RBI will lower its gross value added (GVA) guidance to 7-7.5 percent from 7.6 percent due to demonetization.
All eyes are on the Reserve Bank’s policy meeting on December 7. Almost a month after announcing its demonetization move, the central bank will have its bi-monthly policy meet when the market is expecting a cut.
A CNBC-TV18 poll reveals that economists and bankers are expecting atleast a 25 basis points rate cut. The respondents also expect a partial roll back of 100 percent cash reserve ratio (CRR) hike that was due to be reviewed by RBI on December 9.
CRR limit is likely to be maintained at the 4 percent level.
Almost 70 percent of the people are expecting a 50 bps rate cut by March 2017. Another 75 percent believe that the RBI will lower its gross value added (GVA) guidance to 7-7.5 percent from 7.6 percent due to demonetisation.
As far as inflation is concerned, respondents are expecting it to remain unchanged at 5 percent for March 2017, the poll reveals. No change in liquidity is expected in this meet.
*Key Results Today:
GMR Infra
Prestige Estate
PNR Infratech
Crompton Greaves
IMPORTANT RESULT:
Crompton Greaves
TECHNICAL LEVELS: CROMPTON GREAVES
Crompton Greaves... Clearly indicates that below 69.00 will see sharp downside move in it.
Crashed and made a low of 64.55. Now it has immediate support at 63.00 and resistance at 69.00
Below 63.00 will see more downside panic till 60.50---57.00 mark.
Else it could test resistance again.
Trade with levels only.
OUR RECOMMENDATIONS:
Our call to buy M&M 1160 CE around 37—35 proved great as it flared and made high of 52 before settling at 40 on closing. We booked full profit at 52.
[Profit of Rs 8500 on 1 Lot]
Our call to buy India Cement 115 CE around 4 proved great as it flared and made high of 5.80 before settling at 5.15 on closing. We booked part profit around profit at 5.50—7.00.
[Profit of Rs 6300 on 1 Lot]
What next for today??
Nifty and Bank Nifty Levels
Nifty has resistance at 8190---8230 and support is intact at 8070.
Break and sustain above 8230 will take Nifty to 8280—8350 mark else it can test its support level of 8070 mark again.
On the other hand....
Bank Nifty has resistance at 18500 and crucial support intact at 18200.
Break and sustain above 18500 will take Bank Nifty to 18800—19050 else it could test its support level of 18200 again.
Further downside panic will see only close below 18200.
Trade with levels only.
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