RBI IN FOCUS

 

RBI IN FOCUS

 

WORLD MARKETS

 

U.S. indices gained 0.2%-1.4%, with Nasdaq on the top. Dow and S&P 500 broke three-day losing streak.

 

Google-parent Alphabet surged more than 5% as company launched its Gemini artificial intelligence model. Nvidia and AMD also added more than 2% and 9%, respectively.

 

Weekly initial jobless claims came in below expectation at 220,000, while continuing claims declined to 1.861 million, indicating that the pace of layoffs hasn’t increased.

 

U.S. 10-year treasury yield rose 5 bps to 4.151%. Dollar index fell half a percent to 103.63. Gold inched up 0.2% to $2028 per ounce.

 

The yen staged its biggest one-day rally in almost a year after Japanese monetary authorities offered a surprisingly clear hint at a shift in policy.

 

WTI contract for January fell 4 cents to settle at $69.34 a barrel and Brent contract for February lost 25 cents to settle at $74.05 a barrel.

 

Main European markets were flat to modestly lower.

 

AT HOME

 

Benchmark indices eased a fifth of a percent each, snapping a 7-day winning streak. Sensex settled at 69521, down 132 points while Nifty lost 36 points to finish at 20901. Nifty mid-cap and small-cap indices however gained 0.6% and 0.4% respectively, both hitting fresh record highs and the former extending the winning streak to 25th consecutive session. Nifty Consumer Durables and Media indices gained 1% and 0.9% respectively, becoming top gainers among the sectoral indices while FMCG and Metal indices were the top losers, down 0.9% and 0.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 1564 cr and 2331 cr respectively but net bought index futures worth Rs 598 cr. DIIs were net buyers to the tune of Rs 10 cr.

 

Rupee depreciated 2 paise to end at 83.35/$.

 

OUTLOOK

 

Today morning, Shanghai is little changed, Hang Seng is down 0.2% while Nikkei is off 1.5%. GIFT Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 21050 was the next upside level to eye for Nifty while immediate support on the hourly chart had moved up to 20525, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 20850 before closing at 20901.

 

21050 continues to be next upside level to eye; 20525 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above yesterday's high of 47260, 48000, around which a rising trendline adjoining tops made in December 2022 and July 2023 is placed, would be next major target; 45450 is immediate support.

 

RBI's Monetary Policy Committee is widely expected to leave key interest rate and stance unchanged when it announces it's decision today. Growth projections however, might be raised.

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