Yesterday RBI Cut Repo Rate by 25 bps as Per our Expectations

  • Market Overview

Yesterday RBI cut Repo rate from 6.25% to 6.00% i.e., by 25 bps as per our expectations. The RBI revised its inflation outlook downwards to 2.9-3% in the first half of this year and 3.5-3.8% for the second half of the year Nifty and CNX Smallcap yesterday made a low of 11559 and 6590 respectively trading below their previous day low of 11629 & 6643 but managed to close at 11598 and 6620 respectively. However, FII & PRO have bought 72772 contracts yesterday thereby giving an indication of support to the market. Therefore, further clarity in the market will come only if Nifty and Smallcap trade above their 3rd April high of 11761 and 6775 respectively.

Sectoral Analysis:

In spite of overall negative cues from the market, the Cement and Cement product sector managed to stay in the green, the sector was up by 0.53% with Heidelberg rising 2.72% as its top sector gainer for the day. Automobile sector also managed to close flat with 0.17% return with Rico Motor rising 3.76% as its highest sector gainer for the day. In Defensive sector, Pharma was up 0.12% and top performing stocks in this sector were Neuland Laboratories and Strides Shasun which rose by 7.33% and 4.55% respectively. In the Chemical sector, Kiri Industries was up by 6.66% and Fineotex Chemical was up by 5.27%.

Open Interest Analysis:

FII & PRO are the major players in the Derivatives segment and have an upper hand in the market as their position provides direction to the market. In the current expiry, they have started with the position of 67472 contracts in Index option (both FII & PRO combined) when Nifty spot was trading at 11570. As on 4th April, they have created a long position of 72772 contracts yesterday and had Net Open Interest position of 27168 contracts in the current expiry.

US Data

The US 10 Year T-Note is trading at 119. The Bond has broken its important low of 120.03 on 2nd Oct 2018. The US Dollar Index is trading at 96.24.

Sector Performance as on 4th April 2019

Sector Performance as on 4th April 2019

Small Cap Gainers as on 4th April 2019

Small Cap Gainers as on 4th April 2019

Large Cap Gainers and Losers as on 4th April 2019

Large Cap Gainers and Losers as on 4th April 2019

Mid-cap Gainers and Losers as on 4th April 2019

Mid cap Gainers and Losers as on 4th April 2019

Index Options

Index Options

FII+PRO in combined have sold 40304 contracts in the index options in the current expiry.

Cash Market Data

Cash Market Data

In the last 10 days, FII has bought shares in cash segment worth Rs. 7688.88 Crore.

DISCLAIMER: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

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