Daily Nifty/Bank Nifty News Letter

Nifty Outlook:  

  The Reserve Bank of India (RBI) kept the repo rate—its key lending rate—unchanged at 6.25 percent on Thursday, forecast robust a 7.4 growth in 2017-18 aided by waning effects of demonetisation, although inflation risks remain in the medium term. The RBI hinted at a looming inflation threat over the next 6-12 months, obliquely leaving the door ajar for an interest rate hike in 2017-18. For 2017-18, inflation is projected to average 4.5 per cent in the first half and 5 per cent in the second half.

Bank Nifty Outlook:  

At higher reverse repo, the central bank would suck cash from the system to stymie demand and cool prices. It will also encourage banks to park excess funds with the RBI that will fetch higher returns. Banks are awash with funds as millions have deposited outlawed old Rs 500 and Rs 1000 notes between November 8 and December 30, 2016. The overnight call-money rates—the rate at which banks lend to each other to address daily liquidity shortages—normally remains within the LAF. Last year, RBI announced its intent to progressively reduce the LAF from 100 basis points to 25 basis points, based on an expert panel’s recommendations.

Nifty Trends
R1	9300
R2	9380
S1	9220
S2	9170

Technical Outlook:

Top Gainers
TATASTEEL	503.40
ZEEL	553.15
BAJAJAUTO	2807.00
AMBUJACEM	242.65
ULTRACEMO	4140.90

Top Losers
HINDALCO	193.85
ITC	274.00
SBIN	292.25
ICICIBANK	280.20
COALINDIA	286.35