RBI POLICY TO PROVIDE DIRECTION
Nifty 7684 +83
Market began on a positive note for the week with optimism ahead of RBI policy and recouped most of the Friday losses. 50 DMA appears to have lent good support to Nifty. However, unless Nifty closes above 7725, it can not reenter short term bullishness. Hence, Tuesday’s RBI policy and consequent market action is crucial. Nifty spot is expected to encounter resistance at 7725, 7760 and find support at 7640, 7600 for Tuesday. While Global cues, Quarterly results and Funds flow are expected to broadly guide the market movement, based on the present market position, market can be expected to experience volatile / zigzag movements in view of the RBI Policy.,
MARKET RECOVER BEFORE POLICY
Nifty 7684 +83
Market began on a positive note for the week with optimism ahead of RBI policy and recouped most of the Friday losses. 50 DMA appears to have lent good support to Nifty. However, unless Nifty closes above 7725, it can not reenter short term bullishness. Hence, Tuesday’s RBI policy and consequent market action is crucial. Nifty spot is expected to encounter resistance at 7725, 7760 and find support at 7640, 7600 for Tuesday. While Global cues, Quarterly results and Funds flow are expected to broadly guide the market movement, based on the present market position, market can be expected to experience volatile / zigzag movements in view of the RBI Policy.,
MARKET RECOVER BEFORE POLICY
Snapping
a two-session losing trend, Indian stock markets today ended on a
positive note with the Sensex rebounding about 242 points to
25,723.16 on buying in banking, consumer durables and auto stocks
ahead of the RBI monetary policy review. IT stocks also supported
gains in view of a weak rupee. Global cues also helped as China was
buoyed by recent data indicating recovery and reported intervention
by Portugal's central bank to rescue crisis-hit Banco Espirito Santo,
boosted confidence. The 30-share barometer, which had lost 606.58
points in the previous two sessions, commenced on a strong footing to
touch the day's high of 25,754.42. It settled with a gain of 242.32
points, or 0.95 per cent, at 25,723.16. Intra-day, it had fallen to a
low of 25,531.38 but recovered smartly. The 50-share NSE Nifty rose
by 81.05 points, or 1.07 per cent, to close the session at 7,683.65
after shuttling between 7,694.80 and 7,622.05 intra-day. It had
slipped 189 points in past two days. Expectations that the Reserve
Bank of India (RBI) in its monetary policy review tomorrow will give
some relief supported the bullish market sentiment, brokers said.
However, consensus is of the view that RBI will not cut rates
tomorrow. Interest-sensitive stocks such as SBI, ICICI Bank, and Axis
Bank gained about one per cent ahead of RBI meet outcome. Shares of
Infosys zoomed 3.66 per cent to end the day as the best Sensex
gainer. Hindalco spurted 3.12 per cent, Sesa Sterlite 2.44 per cent,
Wipro 2.42 per cent, Maruti Suzuki 2.40 per cent and Bajaj Auto 1.72
per cent. Overall, 25 constituents of the 30-scrip Sensex rose. The
weakness in the rupee, which is trading at over 3-month low at 61.08
(intra-day) against the dollar, helped IT stocks, which get a large
chunk of sales in dollars. Meanwhile, overseas investors pumped in
USD 6 billion into the Indian securities market in July -- taking
overall net inflows since beginning of 2014 to over USD 26 billion.
Sectorwise today, the BSE Consumer Durables index gained the most by
rising 3.20 per cent, followed by IT index (2.08 per cent), Power
index (1.73 per cent), Teck index (1.73 per cent) and Banking index
(0.70 per cent).
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