Finance Ministry to RBI “CUT the Interest Rate”- Market Report, Nifty & Bank Nifty. 19 Nov 2024 #Finance

hello everyone please pause and have a look this is the Credit and deposit growth of Indian banking sector as we see here 3 4 months ago bank’s Credit growth was around 20% that at present dropped to below 15% exactly near 13% the more

Credit growth the more Banks make money please don’t mistake me deposit growth rate is also important but comparatively Credit growth rate is more important this slowdown of the banking Credit growth is one of the present major issue for that

yesterday Indian government pushed back the RBI so in this CashNews.co first let’s discuss those in detail and then we can discuss our regular pre-market report for today 19th November 2024 for the near shock market in terms of nifty and Bank Nifty before starting please pardon me I’m

not feeling well so my voice may not be good anyway coming to the topic let’s understand the issue first almost for two long years bank’s deposit rate was low the difference was approximately 7 % though the deposit was low Indian Banks were managing it through issuing the bond and

raising the money by some other means to some extent which is okay since almost all the banks in the world do that same however being conservative in a good manner RBA started to restrict the bank’s lending like they have to allocate 5% of their Capital asset as provision for

the Loans that they issue for infrastructure spending in addition Banks has to keep large amount aside for the Run of deposit withdrawal Etc which all successfully calmed down banking sector Credit growth regarding those yesterday

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance ministry pushed back RBI for those regulation like now government requesting the RBI to change the rule Case by case approach rather than broad provision allocation for example

they said for highrisk Real Estate project 5% provision is okay but the same is not required for solar or other renewable projects similarly for the runoff deposit they should have mandated the provision only on certain categories like where they might see Heavy withdrawals rather

not to implement across the board basically Indian government wants the Credit growth back to 20% above all very very important now our Finance minister Nala

sitaraman also recommending RBI to cut the interest rate I mean only in the last CashNews.co we discussed this during weekend already Commerce Minister peush goyel recommended the RBA to cut the industry now yesterday in an event our bold; color: #1a73e8; text-decoration: none;">Finance minister also echoing the same as far as I know the present RBA governor in most of the time they favor the government so most probably on December 6th we can expect 25 basis point rate cut please note the present RBA

Governor’s tenure is expiring on December 10th and as per News website it looks like Indian government is going to extend his tenure anyway the takeaway point is government is pushing back the RBI to relax the Credit rules and also recommending to perform the rate cut will

RBA do the rate cut in the upcoming MPC meeting only time has to tell in addition to all Indian government revises the norms for dividend payout and Shares buyb for the public sector companies like for example except for government owned Banks and Insurance

companies all other straight run government companies have to pay a dividend of 30% of Profits or 4% of Net Worth whichever is higher second for those companies whose share is less than its Book value for the past 6 months have a Net Worth of 3,000

rupes and a cash balance of 1,500 rupes means they have been asked to consider Shares buyback so today we can expect Market to react for this new public sector company’s Norms as well as for this #1a73e8; text-decoration: none;">Finance ministry suggestion now coming to regular stuff last night in us there was no major macro scheduled release So based on the stock performance US market closed mixed most tech stock increased whereas Dow Jones was dragged down by material stocks

thus in the end Dow Jones alone decreased marginal 0.13% S&P increased 39% and NASDAQ got by 6% in case of us VX it decreased near 3.5% and moved near 15.5 here like to highlight one thing major AA tech stocks Google Microsoft Netflix Tesla and Facebook all those four increased over 1% however

Nvidia stock dropped one 1% because its quar results due on Wednesday night moving on in case of oil this Russia Ukraine conflict escalation made the oil to increase 3% at the time of this CashNews.co Bren crud is trading around $69 us per barrel and WT crud traded at 73 us for Barrel then

regarding Indian ADR except Vio all of them closed to positive and also if you calculate the Arbitrage all of them indicating the flat to positive so for now both Banking and it stocks looks somewhat okay however for some reason relance gdr closed to negative and in Arbitrage also it’s an

indication of negative opening then in gift Nifty also the story is the same today early morning it closed at 23537 yesterday the premium was just 50 points equating it with the spot Market indicating the Gap up opening of 20 to 30 points apart from this yesterday also in the cash market for the

35th session fi was net sellers but looks like they reduced their selling size I mean before four to five sessions every session the net sold for over 4,000 C rupees but yesterday the net sold only for 1,400 rupes not just yesterday even on the last three four trading sessions their selling size

reduced to around 2,000 c rupes as a summary US market bounced back and particularly tech stocks closed to positive so at present gift Nifty and Indian ad are all indicating a mild positive here please note tomorrow Maharashtra election holiday and tomorrow evening we can can expect the Maharashtra

election exit pole results so today we can expect Market to react for that as well moving on as per stock open add Deepak nitrate glenark emphasis htfc AMC baj Fen and srf got an increas open interest along with a negative close indicates the short Bel up on the other hand National aluminium rbl

Bank asoke cland Dober Maro and ubl got an increase in open interest with a positive price close indicating the long build up about the things to look out during our Market hours at 12:30 p.m. some European countries like Italy Germany and French car registration data is shall release here that

macro data will give direct clue about the state of the economy then in the aftermarket house Europe’s consumer Inflation is due and for us some housing related macro are some of the items we need to keep an eye out today coming to technical Nifty opened 70 points Gap up at

23,600 but could not sustain and for most part of the day traded lower and also closed to below 23,500 thus on the daily chart Nifty formed a bearish Candlestick pattern with some lower Shadow and in addition now for the 2 days in a row Nifty had been trading below 200 day moving average hence

until Nifty climbs and sustains above this key moving average like 200 day and 100 day the trend is likely to remain weak however now RSA daily motum indicator entered the oversold Zone and the positive thing is the selling pressure appears to have reduced now so in the short term Nifty might

recover towards 23,700 to 23,800 range on the downside the support is at 23,200 to 23,300 in case of Bank Nifty it opened 130 points Gap up and outperformed Nifty by remaining higher for another session then closed at near 50360 thus on the daily chart Banky formed a DOI cand pattern though not a

classical one I mean technically Bank Nifty remained within the range of last Wednesday and consistently defended the 200 day expon moving average 49910 for the third consecutive session which is a positive sign however the momentum indicator macd is still indicating a bearish trend in the short

term meanwhile RSA indicator also below 50 mark on both daily and weekly charts all signaling weakness hence if Bank Nifty sustains above 50,600 the relief rally could extend to 15,000 level overall the shortterm trend is down but as long as Bank Nifty holds above 14,900 a pullback rally is

possible on the weekly options data the maximum call option openers was at 24,000 strike followed by 24,500 and 23,500 with maximum new call option rating at 24,000 strike and then 23,500 and 23,700 on the put side the maximum open was at 22,500 strike followed by 23, and 23,500 with maximum new

put option writing at 23,200 strike and then 20 22,500 and 23,000 th from options data Nifty might find support at 23,200 to 23,000 level while resistance is expected at 23,500 to 23,700 level so that’s all in this CashNews.co hope you all got some information please consider subscribing the

channel and liking the CashNews.co so that it will help me beat the YouTube algorithm and also motivate me to do more please don’t make any investation based on this as SE advisor I’m doing this for me and viewers educational purpose only thanks for watch sing