Trade Setup | Surabhi Upadhyay’s View On Market

WEAK GLOBAL CUES, ALL EYES ON RBI
– Banking fears return to Wall Street as Moody’s downgrades lenders.
– Ratings downgraded: M&T Bank, Pinnacle Financial, BOK Financial, Webster Financial.
– Under review for downgrade: Bank of New York Mellon, US Bancorp, State Street, Truist Financial, Cullen/Frost Bankers and Northern Trust 
Moody’s on downgrades. 
– “U.S. banks continue to contend with interest rate and asset-liability management (ALM) risks with implications for liquidity and capital”
– “Many banks’ Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital. This comes as a mild U.S. recession is on the horizon for early 2024 and asset quality looks set to decline from solid but unsustainable levels, with particular risks in some banks’ commercial real estate (CRE) portfolios.”
 
No sharp reactions to downgrades in money markets
– DXY remains above 102

– China’s July trade data, CPI data pointing to softness
– China consumer prices fall for first time in over 2 years

– No change in policy rate, stance expected from RBI tomorrow

– Post market hours earnings a mixed bag: Good results from Siemens, Coal India
– Rangebound action likely to continue
– Nifty Key Levels: 19644, 19296
– Bank Nifty Key Levels: 44689, 44279