Market Awaits RBI Policy Decision tomorrow

Aided by global cues (positive Asian markets) Nifty opened with close to a 70 pt gapup, and quickly made a low @ 24613 within the first 15 mins of trading. Thereafter, bulls took over and drove the Nifty to 24900 levels where selling took over and Nifty finally closed the day at 24750, thereby clocking gains of 130 pts for the day. Top Nifty Gainers: $ETERNAL $TRENT , DRREDDY Top Nifty Losers: INDUSIND Bank, TATA Consumer, Axis Bank The India VIX cooled down even further today and ultimately closed @ 15.1 levels, down 4.3% for the day. Range for the Day – 287 pts. Weekly Options Data (Considering Strikes which are within 1500 pts above and below Spot price): Highest Call Base 26000 Highest Call OI Addn 26000 Highest Call OI Unwinding 24600 Highest Put Base 23000 Highest Put OI Addn 24700 Highest Put OI Unwinding --- MAX PAIN 24750 The ATM strike (24600) has a combined (put + call) premium of 375 pts. This is close to par considering we have 5 trading days to go till expiry. View: Nifty continues to trade within a broad 600 pt range with 24500 on the downside and 25100 on the upside. For the week, Nifty will have a bearish bias below 24785 levels while bullish bias will emerge only above 24880 levels. We have the RBI Policy decision tomorrow. Market is expecting a 25 basis pts rate cut, though there is a slight probability of a 50 pt cut as well.