FOR THE LIVE OPTION CALL PUT/STOCK FUTURE/STOCK CASH/NIFTY BANKNIFTY FUTURE TIPS WHATSAPP ON 9039542248
The market fell sharply on Wednesday, extending losses for a sixth straight trading day amid weakness in global markets as concerns persisted over aggressive monetary tightening by the Fed and its impact on economic growth. Investors awaited the outcome of a key RBI Monetary Policy Committee meeting due this week for domestic guidance. Domestic stock market benchmarks the Sensex and Nifty ended 1% lower on Wednesday, a day ahead of weekly and monthly F&O. Sensex fell 509 points, or almost 1%, to 56,598, while Nifty fell 0.9%, or 149 points, to settle at 16858. The Reserve Bank of India's rate-setting body began its three-day deliberations on Wednesday amid expectations of another 50 basis point rate hike to curb high inflation. Based on Monetary Policy Committee (MPC) recommendations, the RBI raised the repo rate by 50 basis points in June and August, after raising the short-term lending rate by 40 basis points in May in an off-cycle decision. The MPC, led by RBI Gov. Shakkanta Das, is scheduled to meet September 28-30. The result will be announced on September 30th. The central bank, which has hiked the repo rate by 140 basis points (bps) since May, may opt for another 50 bps hike, taking the policy rate to 3 percent. Year high of 5.9%. The current rate is 5.4%. The consumer price index (CPI), based on retail inflation, which showed signs of slowing down in May, has strengthened again in August at 7%. The RBI takes retail inflation into account when framing its bi-monthly monetary policy. The US Federal Reserve made the third straight rate hike after raising rates by 75 basis points to bring the target range to 3-3.25%. The UK and EU central banks have also raised interest rates to tame inflation. In a report, the Bank of Baroda said monetary policy would be watched more closely this time amid recent developments in the FX market following last week's Fed rate hike. The RBI view on all topics will provide guidance to the market on repo rate, attitude, growth and inflation forecasts, rupee, liquidity and global view. Markets remained choppy with a strong bearish bias as investors exited banking and metals stocks ahead of the monthly F&O expiry, with the likely rate hike by the RBI and other central banks suggesting bearish sentiment could continue. Technically, we think 16900 would act as the immediate resistance level. Below that, the corrective wave is likely to continue to 16800-16600. On the upside, a short recovery rally is only possible after the break from 16950. Above that, the index could rise to 17000-17200. The Nifty has major support between 16700-16500 (which is a key retracement support level). Buying index heavyweight stocks is prudent if Nifty falls to 16500.
Resistance: 17400,
17550, 17700
Support: 17300,
17150, 17000
No comments:
Post a Comment