RBI Interest Rate Decision! Be Prepared for Volatility! Share Market Today


Here are some of the major updates that could move the markets today:


Axis Bank will wind up its UK subsidiary following termination of an agreement to sell 100 per cent of the stake to OpenPayd Holdings. In March 2021, Axis Bank had informed the exchanges about entering into a share purchase agreement with OpenPayd Holdings for sale of 100 per cent stake in Axis Bank UK.

Britannia Industries said its consolidated net profit fell 13.24 per cent to Rs 335.74 crore in the April-June quarter of FY23 due to impact of inflationary headwinds. The company had posted a net profit of Rs 387.01 crore in the April-June quarter a year ago.

Moody's said it has upgraded Yes Bank rating while changing outlook to 'stable' on the back of its equity capital raise plan announced last week. The global rating agency has upgraded the private sector lender's long-term foreign currency issuer rating and long-term foreign and local currency back deposit ratings to 'Ba3' from 'B2'.

Dabur India reported a marginal increase in its consolidated net profit at Rs 441.06 crore for the June quarter as the inflationary headwinds continued during the period. The company had posted a net profit of Rs 438.30 crore in the April-June quarter a year ago.

Berger Paints India reported an increase of 80.60 per cent in consolidated net profit to Rs 253.71 crore for the first quarter ended June 30, 2022. The company had posted a net profit of Rs 140.48 crore in the April-June period a year ago.

What to Expect? 

NIFTY opened with a small gap-up at 17,468 and tried to move up. There was a sudden fall of more than 300 points from the high! The index saw short-covering towards the end and closed flat at 17,382.

BANK NIFTY opened with a gap-up at 38,157 and fell heavily. Even 37,250 was touched but there was buying towards the end and the index closed at 37,756, down by 234 points or 0.62%.

IT moved up by 1.2%.

The US markets closed slightly lower but the  European markets moved higher.

The Asian markets are trading in the green. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 17,438 indicating a gap-up.

NIFTY has supports at 17,350, 17,270 and 17,200. We can expect resistances at 17,430, 17,500 and 17,600.

BANK NIFTY has supports at 37,350, 37,000 and 36,500. Resistances are at 37,800, 38,000 and 38,150.

Foreign Institutional Investors net bought shares worth Rs 1500 crores. Domestic Institutional Investors also net sold shares worth 50 crores.

INDIA VIX is at 19.3.

VIX had shot up and crossed 20 yesterday with that sudden fall and fear. This led to a heavy spike in the premium and even the OTM call option spiked with down-move.

It was surprising to see the sudden heavy fall. There were rumours regarding the Taiwan conflict. There was no fall in any other market but our market fell heavily. Everyone thought that the down-move was probably because of uncertainty before RBI decision. But the fall was so steep and there were reports that China was attempting a military drill.

RBI interest rate decision will be out today at 10 AM. The commentary after the announcement will be important. Hope you remember how volatile the move was in the last MPC day.

Bank Nifty has been underperforming for the last few days whereas NIFTY formed consecutive green candles without showing any weakness. Let us see if BNF can shoot up today with the event.

It is expected that there will be a positive commentary and a 40 basis points hike. 

I will be watching 17,300 on the downside and 17,500 on the upside.
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