Stories
Market Strategy: RBI policy and crude movement take center stage for investors
- •The primary market triggers today are the Reserve Bank of India monetary policy and rebounding crude oil prices.
- •US markets reached new all-time highs while ignoring bond yields, and FII selling in the cash market has decreased significantly.
- •Nifty technical levels show first support at 22,700-22,750 and major resistance at 22,850-22,950.
- •Experts advise caution on Bank Nifty as major moves are expected only after the policy announcement.
- •Stock specific actions highlight weak Q2 updates for Titan, while Kotak Bank received a positive buy rating from HSBC.
Key Questions Answered
There is an almost 100% expectation of a 25 bps rate hike from the RBI. If there is no rate hike, it would be viewed as a bigger negative since a rate hike is considered necessary in the system, potentially triggering an instant relief rally that carries the risk of a sharp fall.
Brent crude is hovering in the range of $100 to $101 per barrel. While movement through the Strait of Hormuz has increased, the number of attacks has also risen, with the UK MTO reporting 9 attacks in Hormuz during October compared to 18 attacks in Hormuz and the Gulf in September.
Nifty's first support stands at 22,700 to 22,750 with major support at 22,600 to 22,650. The first resistance is between 22,750 and 22,800, while major resistance is pegged at 22,850 to 22,950.
