RBI Policy and Expectations: Now the whole lot of stock market analysts are ready to speak about RBI Policy and its impact on the next market move. We know the whole world watches us too close for our take on the same! RBI Macro economic survey has already lowered the growth forecasts for FY 14 from 5.7% to mere 4.8% and for FY 15 from 6.5% to 5.8%. Also WPI inflation forecast for FY 14 was raised from 5.3% to 6%. REPO rates are expected to increase by 25 basis points (0.25%) from current levels of 7.5% to 7.75% to control inflation and one should not be surprised even with a 50 basis point move. Also one can expect cut in Marginal Standing facility rates (MSF) by 25 to 50 basis points. Further loosening of tight monetary stands on cash reserve ratio cannot be ignored. Technically Nifty futures holds short term supports at 6050-6080 levels and REPO rate hike with hawkish RBI announcements can take markets to a raid till lower levels of 5905 range with + or - 20 points on account of volatility. Below 10728 Bank Nifty futures will be in clear selling. (Do note the magical number 10728 obtained as per RUDRAOLOGY DAY TRADING SYSTEM and selling only below decisive break of 10728 with atleast 15 minutes trade held below these levels) Now this selling triggered only below 10728 can move on till 10300 levels with + or - 50 points on account of volatility. Also one cannot rule out levels till 10000 if trades below 10300 continues on the downside without any hold of 10300 levels. But however after the move, markets have to be supported by liquidity which is powerful than all other factors and we should see strong buying at lower levels to pull back a recovery irrespective of all bad news from RBI. The move may happen either immediately after the fall to the above expected levels or after the expiry of F&O Segment this Thursday. Hope the above clear 1 sided view given selflessly, should help many traders to take right market decisions based on their time frames and risk-rewards. Do forward this article written atleast 24 hrs before RBI Policy to everyone whom you know and support me by joining hands to spread RIGHT financial literacy among all. Many wish, I should come to CNBC and Should increase the current program time in tv9, should give more intraday tips during LIVE markets hours and many more. But all that can happen only when these type of tough market analysis before the event reaches the WHOLE WORLD and also the concerned decision makers of these channels. So it is in your hand to ensure more people read this article and all your demand will surely give the desired result. Sri Krishna in Bhagavad Gita clearly says Our job is only to work hard and selflessly. He will take care of the desired result Hope you will all forward this article to all your friends in Facebook without fail and be part of this movement to spread Financial literacy among all. CA.Rudramurthy B.V. ACA, CFTe, MCOM, MFM, MPHIL, PGDBA, PGDMM. 9663 258 258/ 99 7225 7225. Do like us on Facebook page for FREE LIVE updates during market hours. facebook/RudramurthyCA?ref=tn_tnmn JUST COPY PASTE THE ABOVE ARTICLE ON YOUR WALL AND MAKE EVERYONE DO THE SAME TO MAKE THIS ARTICLE REACH TONS AND TONS OF PEOPLE.
Posted on: Mon, 28 Oct 2013 17:09:37 +0000
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