Business Economy 02 Dec 2019 RBI policy, macro da ...

RBI policy, macro data to drive market

DECCAN CHRONICLE. | ASHWIN J PUNNEN
Published Dec 2, 2019, 2:15 am IST
Updated Dec 2, 2019, 2:15 am IST
Investors will be closely monitoring foreign fund flows, crude movement and the rupee.
Given the inflationary trend, there is a likelihood that a 25 bps rate cut may not follow but in order to tackle the slowdown, rate cut is the only tool available with the RBI, thus it will be a tough call for the MPC to take, analysts said.
 Given the inflationary trend, there is a likelihood that a 25 bps rate cut may not follow but in order to tackle the slowdown, rate cut is the only tool available with the RBI, thus it will be a tough call for the MPC to take, analysts said.

Mumbai: The RBI monetary policy, auto sales numbers and macro-economic data are likely to drive the equity markets in the coming week.

Investors will be closely monitoring foreign fund flows, crude movement and the rupee.

 

According to analysts, stocks are likely to consolidate in the short-term before resuming the uptrend even as the GDP data has come inline with market expectations

Given the inflationary trend, there is a likelihood that a 25 bps rate cut may not follow but in order to tackle the slowdown, rate cut is the only tool available with the RBI, thus it will be a tough call for the MPC to take, analysts said.

The analysis of F&O data suggest trade with a positive bias.

“The Nifty posted almost 140 points of gain in the last week from 11900 and made 11900 strike the second highest put base of December series. We expect the index to trade with a positive bias above these levels. It is likely to eventually move up to 12300,” said Amit Gupta, Head F&O, ICICI Direct

Technical analysts, however, said, Nifty50 has a failed double top, a sign that correction has set in. Nifty Private Bank Index has made a clear double top whereas Mid-Caps and Small-Caps Indices are diverging with the current rally in Nifty50, indicating overall weakness.

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