RBI Plans To Pump Cash Into Banks
The Reserve bank Of India is all set to inject fresh liquidity into banks via a $5-billion swap between the 26th and 28th of March 2019. The move is aimed to curb the sudden shortage of liquidity in the system to the tune of Rupees 1 trillion. The USD/INR is currently trading at 69.256 approx which is very close to its 3 month low. Nifty on the other hand has hit a high of 11399 in today’s session, which is marginally short of today’s upside target of 11421 approx. The central bank said the swap facility is part of its “liquidity management toolkit” and would be to meet the durable liquidity needs of the system. Going forward, Nifty is likely to ride the RBI’s move to sustain the cash liquidity of the system. The might scale up to 11437 approx if it trades above tomorrow’s range high.
What To Expect This Week
Nifty stopped 22 points short of the upside target of 11421 today. The index registered a high of 11399 approx, despite a narrow range bound move of 66 points intraday. In a surprise move, the Reserve Bank Of India has announced that it plans to swap $5 billion and infuse fresh cash into the Indian Banking system. This move might trigger a fresh phase of the bull run in the market. Today’s closing at 11387 has yet again underlined the strong presence of buyers in Nifty. Going forward, Nifty is likely to scale up to 11437 approx, if it trades above tomorrow’s range high. On the other hand, if the index drops below tomorrow’s range low, it might scale down to 11269 approx.
In the hourly session, Spot Nifty has closed around 11343 approx. The index is likely to find resistance around tomorrow’s hourly range high. The nearest upside target for Nifty if it trades above the resistance is 11360 approx. On the other hand, if Nifty trades below tomorrow’s hourly range low, it might scale down to 11260 approx.
Bank Nifty Options Data