_Morning Snippet:- 9th June 2025_ *Index Observation* Nifty ended a percent higher in Friday’s trade after an unexpected 1% CRR cut by RBI clubbed by a higher than priced in repo rate cut. The index has reclaimed its 25000 level which had been acting as a supply zone for past 3 weeks now however it continued to remain shy of 25050 level on a closing basis which is needed to resume upside and breakout of the ongoing range. A fresh upside is set to open post 25050 is taken out on a closing basis. Bank Nifty brokeout into fresh all time highs after the monetary policy announcement as the index reclaimed its wall of worry. Bank Nifty faced rejection earlier last week from its previous all time highs after levels. Outperformance of Bank Nifty is likely to continue for this week’s trade as well as the index resumes further upside towards 57200 / 57600 odd. BSE Sensex weekly expiry is scheduled for tomorrow while Nifty’s weekly expiry is scheduled for Thursday. *Interesting Observation* The RBI has announced a 50 bps cut in the Repo Rate (from 5.50% to 5.00%) and a 1% reduction in the Cash Reserve Ratio (CRR) (from 3.00% to 2.00%). This marks the first decisive easing move since 2020, aimed at supporting growth and improving systemic liquidity. Market Context • The Nifty Bank Index consolidated near its all-time highs demonstrating remarkable strength amid global uncertainty and a tight domestic liquidity environment. • Historically, such policy interventions by the RBI — particularly rate cuts and CRR reductions — have occurred during periods of stress or slowdown. Yet, these have often paved the way for strong recoveries or renewed uptrends, especially in banking and rate-sensitive sectors. Unlike past easing moves that were largely reactive and led to recoveries from stressed conditions, the current proactive cut has sparked a breakout—underscoring the RBI’s intent to front-load support for growth. This shift makes the upcoming price action in banks and rate-sensitive sectors particularly noteworthy. We maintain our view, as shared in our Friday update, that Bank Nifty has a critical level due near ₹57,700. This zone may act as a key inflection point. *DERIVATIVES | Trade Setup* Cash Market Activity FII: ₹ 1009 crore DII: ₹ 9,342 crore *Week-to-Date (WTD)* FII: ₹ -3,565 crore DII: ₹ 25,513 crore *Month-to-Date (MTD)* FII: ₹ -3,565 crore DII: ₹ 25,513 crore *F&O Cues* FIIs have added 14k long contracts in last trading session. Their net position now stand at 93k short contracts. In the options segment, the 24500 strike to act as support, while the 25100 strike remains a key resistance. *New 52 Week High Low Data* *Large Cap:* New 52 Week Highs: 2 New 52 Week Lows: 1 *Mid Cap:* New 52 Week Highs: 3 New 52 Week Lows: 1 *Small Cap:* New 52 Week Highs: 4 New 52 Week Lows: 0 *NIFTY500:* New 52 Week Highs: 9 New 52 Week Lows: 2