NIFTYBANK - Cuts in "Chorus"

12 янв.

Recall frenzy of last quarter in the rate cut expectations, we are hardly two weeks into it, there are cuts in chorus about possible Central Bank actions. The march to March meeting is still a door open and shut.

Some banks already voice, it is overdone. Swaps indicate steeper curve. Internals of inflation report suggest services strong. Energy creeping up. Shelter is where members taking shelter.

Last half hour moves in yields is simply the 30 Y bond action and nothing more to be read.

China did not trouble today's inflation, while we await ours.

On the negative side, road to NCLT is 7000 companies long, has not grabbed any attention, it is 3 times the average. They are more in manufacturing, real estate and trading businesses. It is for another day but not now.

There is divergence between NIFTY and BANKNIFTY and when this happens one leads to another. However, we have IT and Energy to chip in. This simple inference can lead to conclude we may potentially be softer here than higher.

47000-47700 should not disturb one out of weekend slumber. Focus elsewhere.