MarketBuzz
1310: The Marketbuzz Podcast: Sensex, Nifty set to open gap down ahead of RBI policy, weekly expiry
Good morning and welcome to Sainvi TV18's Market Bus Podcast. I am Hormos Vatakia and the question that we are asking this morning is whether the recovery that we saw on the NFT yesterday, is that the start of a sustained move or is it a bull trap ahead of some important events. And there are multiple important events to look forward to today, the biggest of them all being the RBI monetary policy decision. And while consensus still remains that this will be yet another status quo. The street will keenly await commentary from the RBI Governor on the recent turn of events and how the central bank is gearing up to combat all of those. And the other big event today of course is the NFT weekly expiry and it has some key levels to cross before it aims for further upside. Now Monday is high of 24-350 is the first one as it is that level where the bulls faced some discomfort yesterday and they have been doing so through the week for that matter. Now post 24-350, Tuesday is high of 24-380 and then 24-400 become the other important resistance levels as many chartists have also said that this band of 24-400 to 24-500 will act as a resistance for the NFT. Well at least for a few minutes into trading on Wall Street yesterday, the bulls would have anticipated a strong handover because the indices are open higher and they have built on those games because the S&P 500 and NASDAQ at the S&P 500 will act as a resistance for the NFT. Well at least for a few minutes into trading on Wall Street yesterday, the bulls would have anticipated a strong handover because the indices are open higher and they have built on those games because the S&P 500 and NASDAQ at the S&P 500 will act as a resistance for the NFT. However because the indices are open higher and they have built on those games because the S&P 500 and NASDAQ at one point were up over 2% each but in a dramatic reversal from the highs, the indices not only gave up all of those gains but also ended significantly lower. The Dow fell over 700 points from the highs of the day while the NASDAQ fell over 500 points to end with losses of over 1%. Now the important data point to watch out for today from the US is the initial jobless claims data which will be released later this evening. And a sign of concern on Wall Street will also be the subdued response to the $42 billion treasury sale which may also have been one of the triggers for the reversal that the benchmark indices saw in yesterday's trading session. The Asian markets have opened lower in line with what the handover from Wall Street was and the gift NFT is also indicating a gap down start for our own markets as well currently trading with losses of over 200 points as we speak. Now most of the recovery on the NFT that we saw in the final hour of trade yesterday was courtesy the NFT bank because the weekly expiry played out over there and that is the other important question as to whether that recovery too will sustain ahead of the RBI policy decision. And last among the important questions today is what happens to the beaten down PSU stocks, the likes of the HAILs and the IRADAS which both snapped a 6 day losing streak yesterday, both of them gained over 5% each. But in case the market turns out to be wobbly as the data is pointing to will the sell off in these names resume as well. That is also important as many of these PSUs particularly those that have been in the news like Ircon, RV, NL, coaching, shipyard, garden reach, all of them are reporting their June quarter results today so it is a big day for the PSUs as well. And since we are on the subject of earnings here are some other important stocks that you need to keep an eye out for other than the ones we just spoke about. Now Hindalco is one of them after Novell is reported an in line quarter but flooding costs may impact their second quarter results so keep an eye out on Hindalco today. Godris consumer is the other one where the India business grew 10% for the quarter but a change in the business model impacted the African business revenue which fell over 36% year on year. The Marico put out a release last evening where it said that the conditions in Bangladesh are gradually normalizing and production operations should also begin soon. It also reiterated that the medium term prospects for the business in that country remain intact. Remember Marico is one of the companies that has very significant exposure to the Bangladesh market. Also watch out for BSE after a strong first quarter where an increase in transaction charges aided at 24% revenue growth along with margins that were at a record high of 47%. And a block deal is likely to take place in protein ego of technologies today where standard charted bank is likely to sell a 3.1% stake in what is said to be a clean out trade in today's session. Some other important results for today. A, B, B, Bharat forms, Biocon, Isher motors is one of them and of course the other important PSEs that I just named earlier along with sale and sova are some of the important results that you need to keep an eye out for today. A side of these there are plenty of stocks to keep an eye out for and we will bring you all of those on CNBC TV 18 and ncmctv18.com through the day. That's all for today. We wish you a happy and safe trading day. Thank you so much for tuning in. [Music] [BLANK_AUDIO]