Daily Report 8-Jun-22

Going into RBI MPC outcome today at 10:00 AM, global cues are positive as SGX Nifty indicates opening around 16500.  Market will take further directional view from policy outcome today.  

World Bank cuts India economic forecast for FY23 to 7.5%, In April this year World
Bank had revise GDP forecast to 8% from 8.7% earlier.

Approach on Indices: Nifty above 16752 & Banknifty above 35693 could open up further upside with yesterday’s low as potential reversal.

India’s 10-year G-Sec have crossed 7.50%, higher bond yield will be negative for PSU Banks as it would reduce treasury gains.  Tomorrow’s ECB meeting will also be an important event for global market.

SGX Nifty @ 16508 up 83.50 points at 8:05 AM.  We are expecting no major surprise from RBI MPC policy and expect market to react positively post event.  We see fear & pessimism is overdone and current level & will review if lower level are tested again.