RBI IN FOCUS

 

RBI IN FOCUS

 

WORLD MARKETS

 

US indices fell 1%-2%, with the S & P 500 extending the losing streak to fourth straight day, on concerns around the state of the economy and whether an economic downturn is approaching.

 

US 10-year treasury yield fell 4 bps to 3.535%. Dollar index rose 0.3% to 105.56. Gold inched up 0.1% to $1770 per ounce.

 

Oil prices tumbled, with oil Bent falling below $80 per barrel for the first time since January. Brent crude futures settled 4% lower at $79.35 a barrel and WTI fell 3.5%, to $74.26 after hitting its lowest level this year.

 

European markets fell 0.1%-0.7%.

 

AT HOME

 

After falling two third of a percent in the initial trade, benchmark indices recouped more than half of the losses through the session to end lower by three tenth of a percent. Sensex settled at 62626, down 208 points while Nifty lost 54 points to finish at 18646. Nifty mid-cap and small-cap indices fell 0.5% and 0.2% respectively, snapping a 4-session winning streak. Nifty IT and Media indices were the top losers among the sectoral indices, down 1.4% and 1% respectively whereas PSU Bank index climbed 1.3%, becoming top gainer, followed by 0.3% higher FMCG index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 635 cr, 1533 cr and 1816 cr respectively. DIIs were net sellers to the tune of Rs 559 cr.

 

Rupee plunged 82 paise to end at 82.62/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 0.4% and 0.3% respectively while Hang Seng is up 0.3%. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 18887, the top made last week, continued to be immediate hurdle, while 18560 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 18577, rebounded to end at 18642.

 

18887, the top made last week, continues to be immediate hurdle; 18560 continues to be immediate support on the hourly chart below which, 20-DMA, placed around 17450, would be next downside level to eye; Meanwhile trading longs can be held on to with the stop-loss of 18560.

 

For Banknifty, 44000-44100 continues to be next target area on the way up; 42900-42800 continues to be immediate support area below which, 20-DMA, placed around 42650, would be next support.

 

RBI's Monetary Policy Committee is expected to hike repo rate by 35 bps at the end of it's 3-day policy meeting today. Market would watch out for wording of the stance and commentary for cues on future interest rate trajectory.