MARKET EYE RBI’S MONETARY POLICY 06 JUN 19

NIFTY BANKNFITY OPTION FUTURE TIPS FOR  4 JUN

Market started the week on a strong footing with both the gauges closing at new lifetime record levels as investors shrugged off weakness in global peers, 5-year low domestic GDP print and unemployment at 45-year high. The weak GDP print, poor auto sales and other high-frequency data raised hopes of a 25 basis points rate cut by the RBI’s monetary policy committee. Sensex hit record high of 40267; Nifty peak of 12088.

We continue to maintain our cautious stance on the markets at higher levels in the near term. The market participants would keep an eye on the RBI’s monetary policy (on June 6th) as it would provide further direction to the markets. Further, domestic macro data, global developments, especially with respect to US-China trade talks and movement of crude oil prices would continue to be on investor’s radar. Overall setup and momentum is positive and a hold of recent zones could extend rally, while support exists at 11900 and then 11800 levels. It has been making higher top and higher bottom formation and supports are gradually shifting higher with medium term support at 11700. 

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Resistance: 12100, 12150

Support: 12020, 11920