RBI Policy Decision Triggers a Rally in Equities

Nifty opened flat and started trading on a bearish note making a low at 24670 within the first hour of trade. Thereafter, RBI’s jumbo rate-cut of 50 basis pts, spurred the Nifty past 25000 levels but with RBI changing stance from Accommodative to Neutral, proved to be a bit of a dampener and Nifty consolidated for the rest of the day before closing @ 25003, up by more than 250 pts. Top Nifty Gainers: $SHRIRAMFIN , $BAJFINANCE , JSW STEEL Top Nifty Losers: HDFC LIFE, BEL, BHARTI AIRTEL The India VIX cooled down even further today and ultimately closed @ 14.7 levels, down 3% for the day. Range for the Day – 358 pts. Weekly Options Data (Considering Strikes which are within 1500 pts above and below Spot price): Highest Call Base 26000 Highest Call OI Addn 25500 Highest Call OI Unwinding 24800 Highest Put Base 24000 Highest Put OI Addn 25000 Highest Put OI Unwinding --- MAX PAIN 24900 The ATM strike (25000) has a combined (put + call) premium of 331 pts. This is close to par considering we have 4 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. 25100 – 25250 is a strong supply zone for the Nifty. If Nifty manages to break past this zone, then a trending move towards its previous highs at 26275 is likely.