Indian Stock Markets Today: Support Builds on RBI Rate Cut Hope

7 August 2019 (8:53 am IST)

Although SGX was negative, Nifty is showing positive numbers in pre-open trading.

Indian stock markets have been showing strong support in the last two sessions when Nifty refused to go below 10,800 and yesterday, the index rallied above 11,000 marks.

Although Nifty closed below this important level, the index and broader Indian stock markets have stared making “higher low” on hourly charts and trading above 20-Day Moving Average in this time frame, which is a trend reversal signal.

Indian stock markets are waiting for the short term monetary policy of the Reserve Bank of India in this session. The intraday trend could turn rangebound before the central bank announces its policy later today. Day traders can find intraday range levels on our Pivot Trading page. These levels are:

Indian markets are hopeful of a 25 basis points rate cut by the RBI. More than the rate cut, markets will be happy if the central bank goes for a CRR ( Cash Reserve Ratio) cut also because that will infuse big liquidity in the financial system.

Indian economy looks heading towards recession and comments from the RBI will be closely watched what the central bank intends to do to help the economy. Any positive comment by the RBI officials can help markets but any disappointment can also lead to quick losses.

Overall, we can expect today a highly volatile session in Indian stock markets. The opening session could remain subdued. After that, based on what markets get from the RBI, these markets will either rally or drop again.

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