India's benchmark indices Sensex and Nifty opened solidly on the back of global cues. The 30-share BSE Sensex rose 411.02 points to 74,287.84 in early trade. NSE Nifty rose 143.25 points to 22,577.90. Analysts expect the consolidation phase to continue due to the lack of triggers. The Reserve Bank of India's monetary policy results on Friday, especially the central bank's comments, are in focus.
On Wednesday, the Reserve Bank's rate-setting committee said the next round of interest rates set amid expectations that the central bank would once again keep its key interest rate on hold and focus more on curbing inflation as concerns about economic growth recede. The meeting began three days of deliberations on monetary policy. said MK Global Financial.
“The tone of the RBIs has slowly shifted from the usual “Hawk-Dovish'' signals to “Graklish,'' which is thought to suggest a non-committal attitude and limited clear forward guidance going forward. . Global narrative liquidity and policy repricing, combined with near-term issues in the Indian rupee and bonds, could make it difficult for central banks to find a balance in policy biases.''Domestic securities the company stated.
On the other hand, the Nifty future price of Gift Nifty is determined at 22,600 and the Nifty April future price is 22,542, suggesting a gap of 50-60 points.
While the next policy may not see any material changes in the RBI's macro assessment, the case and timing of a change in policy focus/stance, the factors that will impact future liquidity management, and, of course, the extent to which the yield curve This includes problems such as evaluating whether a part has a maximum value. Juices and other products will be key to the market.
“While bullish steepening appears to be a popular trade, the consistent repricing of the Fed's rate cuts could spill over into the RBI's response capabilities and would be cyclically noisy for bonds and FX.” added.
Meanwhile, markets in China, Thailand and Taiwan are closed today for public holidays, but Asian stock indexes are trading in the green zone. US stocks ended mixed overnight amid uncertainty over interest rates, especially ahead of important labor market data and comments from the Federal Reserve.
Ashwin Ramani, Derivatives & Technical Analyst at Samco Securities said: Nifty shook off initial weakness and rose steadily, hitting an intraday high of 22,521 before taking profits and pushing the index lower, closing 19 points lower at 22,435.
India's VIX index, known as a fear gauge, fell 2.40% during the day to close at 11.37. It was the third straight day of declines, reassuring bulls.
“Strong writing was observed at 22,400 strike in Nifty. This led to a steady rise in the index on an intraday basis. However, Nifty closed above 22,500 for the fourth consecutive day. “Nifty is unlikely to be promoted unless call writers leave Nifty's 22,500 strikes,” he said.
After hitting a new high of 22,530, Nifty has been consolidating in a range since the last three sessions, said Rushit Jain, Principal Researcher at 5paisa.com. A correction in global stock exchanges, rising oil prices, rising bond yields and RBI policy announcements over the weekend may have created uncertainty and, in turn, led to consolidation.
He added: “However, the index has not broken any support and, in fact, market breadth remains positive as the overall market is performing well.”
Shirshyam Gupta, director and senior technical analyst at Rupeezy, said the weekly open interest accumulation and max pain data hint at a period of reduced volatility in the Nifty in the coming days.