RBI Interest Rate Decision - Pre Market Analysis


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


Wipro and Cisco launched managed private 5G-as-a-service solutions to accelerate enterprise digital transformation.

Tata Elxsi has partnered with Indian Space Research Organization (ISRO) to enable the upcoming Gaganyaan Mission. Tata Elxsi has designed and developed Crew Module Recovery Models (CMRM) for recovery team training of the space mission.

The Board of Titagarh Wagons is scheduled to meet on June 10 to consider and approve a proposal to raise funds by issue equity of shares or other securities including through preferential issue.

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) for Tadalafil Tablets.

Life Insurance Corp (LIC), one of the biggest domestic institutional investors in India, has increased its stake in IT services company Tech Mahindra.

What to Expect Today?

NIFTY opened with a gap-up at 18,667 and moved up. There was consolidation around 18,660 and short covering happened. NIFTY closed at 18,726, up by 127 points or 0.68%.

BANK NIFTY opened with a gap-up at 44,326 and underperformed. There was a proper support taken at 44,140 and the index moved higher to close at 44,275, up by 110 points or 0.25%.

IT closed 0.8% higher.

The US markets closed mixed with DOW closing higher and NASDAQ closing deep in the red. The European markets closed flat to red.

The Asian markets are trading lower.

The U.S. Futures and European futures are trading flat.

SGX NIFTY is trading slightly higher at 18,836.

All the factors combined indicate a flat opening.

NIFTY has supports at 18,685, 18,635 and 18,600. We can expect resistances at 18,740, 18,770 and 18,800.

BANK NIFTY has supports at 44,140, 44,000 and 43,800. Resistances are at 44,350, 44,440 and 44,500.

NIFTY has the highest call OI build-up at 18,600. The highest put OI build-up is at 18,500. PCR is 1.3.

BANK NIFTY has the highest call OI build-up at 44,500. The highest put OI build-up is at 44,000. PCR is 0.9.

INDIA VIX  is at 11.4.

Foreign Institutional Investors net-bought shares worth Rs 1,400 crores. Domestic Institutional Investors net-bought shares worth 400 crores.

Both FIIs and DIIs have turned net buyers and this could be mostly because of short covering. It is not intraday covering I am talking about. Hope you remember the importance of 18,660 where resistance was taken last week. The shorts over there had to cover the position because of the buying pressure the market witnessed yesterday.

Germany's Industrial Output was the only major data that came out yesterday. It was slightly below the estimates. 

China’s exports fell further than expectations. You can see that there is negativity in the Asian markets right now. Australia’s Central bank gave a surprise hike of 25 basis points.

RBI will announce its interest rate decision today at 10 AM. They would continue the pause probably. Usually, we see high premiums around the event. But VIX is low and the impact can be seen in the premiums making it hard for option sellers.

Iron Condor players can wait until the event gets over. This might lead to a sudden decay and even lower premium. But it is important not to get trapped in event volatility. Alternatively, you can enter with fewer quantities in the morning but keep in mind that there is risk involved.

Will Bank Nifty follow Nifty? The corresponding level in BN for short covering is a bit far away; 44,500. Nifty needs just 160 points-move to touch the All-time high. Do you think it will be done this week?

I will watch 18,685 on the downside in NIFTY. 18,770 can be watched on the upside.

Follow us on the marketfeed app’s Signal section to get real-time updates from the market. All the best for the day!

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