Nifty trades sluggish after RBI Governor Shaktikanta Das maintains status quo on key repo rates at 6.5%, cuts CRR by 50 bps to 4%.

*Review & Preview @4PM —— Friday, December 6th 2024*

NIFTY (-31, 24678)
Sensex (-57, 81709)
Bank Nifty (-94, 53510)

Nifty trades sluggish after RBI Governor Shaktikanta Das maintains status quo on key repo rates at 6.5%, cuts CRR by 50 bps to 4%.

Nifty Metal and Auto indices however stole the limelight, up 1.28% and 0.92% respectively.

On weekly basis, Nifty was up 2.23%. Bank Nifty zoomed higher by 2.76%. Nifty Small Cap and Mid-Cap indices up 4% each.

Coming up next:

The US, Friday’s non-farm payroll numbers to be wired at 8:30 ET will take center stage, with the US economy projected to add 183K jobs.

A “too-hot” number could sway Fed policy.

Fingers crossed.

# Sentimental Overview:

As widely expected, and continuing with the neutral monetary policy stance, the RBI maintained its key repo rate at 6.5% for the 11th consecutive meeting (i.e. since February 2023)

In November, aligning with market expectations while continuing a neutral policy stance amid a recent slowdown in economic growth.

The RBI however slashed cash reserve ratio (CRR) by 50 bps, leading to infusion of Rs 1.16 lakh crore into the banking system

RBI has revised its CPI inflation forecast for FY25 upwards to 4.8% against 4.5% earlier as well as Q3FY25 estimates to 5.7% (Vs 4.8% earlier) and Q4FY25 forecast to 4.5% (Vs 4.2% earlier), while lowering the full year real GDP growth projection to 6.6% from 7.2% earlier.

Friday, December 6th meeting could be the final event for Governor RBI Governor Shaktikanta Das, as his term ends later this month.

 

# Technical Overview:

Nifty ended with solid gains in this week’s trade forming a bullish candlestick pattern.

The street will now anxiously eye FIIs data after today’s consolidative movement.

Technically speaking, Nifty and Sensex are still at oversold conditions with immediate upside hurdles seen at psychological 25000 mark while Nifty’s support placed at 24250 mark.

Nifty’s 200 DMA at 23720 mark

# Outperforming Nifty Sectors:
Nifty METALS (+1.20%)
Nifty AUTO (+0.92%)
Nifty PSE (+0.49%)

# Underperforming Nifty Sectors:
Nifty IT (-0.30%)
Nifty MEDIA (-0.26%)

# Bulls of the day:
TATAMOTORS (+3.21%)
BAJAJ AUTO (+2.34%)
AXISBANK (+1.50%)
BPCL (+1.28%)
DRREDDY (+1.10%)

# Bears of the day:
ADANIPORTS (-1.51%)
CIPLA (-1.42%)
BHARTIARTL (-1.09%)
HDFCLIFE (-1.08%)
INDUSINDBNK (-0.99%)
(Source NSSEINDIA.com)

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