RBI POLICY HOLDS KEY
Nifty traded in a narrow range and closed marginally in the negative. However, broader market appeared positive with Advance Decline ratio at 1:0.6. RBI Policy would set the tone of the market and Monday’s market appeared like a “Calm before Storm”. Nifty spot is expected to encounter resistance at 8000,, 8040 and find support at 7920, 7880 for Tuesday. While Global cues and Funds flow are expected to broadly guide the market movement, based on the present market position, market can be expected to trade in a zigzag manner and would be guided by RBI Policy.better Second half.
SENSEX FELL BY 29 Pts AHEAD RBI POLICY
The benchmark Sensex today fell about 29 points to end at 26,597.11 on weakness in interest rate sensitive banking and auto shares ahead of RBI's monetary policy review. The BSE 30-share index today resumed better and gyrated in and out of positive terrain in a range of 26,715.77 and 26,518.01, before concluding at 26.597.11 -- a minor fall of 29.21 points or 0.11 per cent. Last Friday, it had risen by 157.96 points or 0.60 per cent helped by S&P's rating upgrade. The 50-issue CNX Nifty of the NSE also eased by 9.95 points, or 0.12 per cent, to 7,958.90. "Buying was seen prominently in IT and Pharma stocks. On the other hand, selling in sectors such as Metal and FMCG limited the upside. Positive GDP data from US boosted market sentiment, while indecision was seen ahead of RBI monetary policy scheduled tomorrow," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio. Shares of IT majors TCS, Infosys and Wipro notched up 1-3 per cent gains tracking weakness in rupee against US dollar and strong US economic data that boosts prospects of their biggest market. Fall in the ITC, ICICI Bank, HDFC Bank, HDFC, ONGC, Sesa Sterlite, Tata Steel, Bajaj Auto, Hero MotoCorp and Coal India mainly weighed on the market sentiment. According to market participants, a near term major event is a monetary policy to be announced by the Reserve Bank of India (RBI) and Prime Minister Narendra Modi's meeting with US President Barack Obama.