In search of an elusive uptick from new lows, the Rupee will however continue to trade stably at NDF market levels, lending vaporware the claim to appreciation rupee may have had, esp as the US Dollar also starts strengthening based on Q2 performance.
Banknifty seems to have still more room to trade down despite State Bank making expectations and confident of upturn in business sentiment going forward. However the fall in income estimates of banks are likely to show very small losses in the Treasury portfolio and room for some gains to be book too to balance the same if any of the HTM policy changes flow thru to their balance sheets. Markets have to lead this leg of the coming down of interest rates
Markets have a sharp pre open cut, lending credence to a likely revival in mid day trades and closing levels may not move below 7550, but Option traders may utilise the range move in the day to hatch a bullish plot, selling 7600 puts towardss the close int he more adventurous portfolios.