Yesterday we good rally in our markets as mentioned. In my last blog i have clearly mentioned that the candelstick pattern suggests that we will definately see some pull back, but it is still nt the bullish trend. Nifty still have a good support at 4440. Close above this is still a good sign. Global indices are down by around 2%. American markets are down on on fears that Central banks around the world would increase rates to combat inflation, in turn affecting growth. Oil has once again risen by $4 to reach 135 on more than expected decline in inventory levels.
Reserve Bank of India has decided to increase the repo rate by 25 basis points to 8.00 per cent from 7.75 per cent with immediate effect. There is no change in the reverse repo rate. The year-on-year WPI inflation which was 4.36 per cent on January 12, 2008 (at the time of announcement of the Third Quarter Review for 2007-08) increased to 7.33 per cent on April 12, 2008 (at the time of announcement of the Annual Policy Statement for 2008-09) and to a high of 8.24 per cent on May 24, 2008. Till now the Fuel prices are not included in the WPI. If this is done then we can see inflation in the double digit. To control the inflation this steps are been taken. RBI may again raise in the month of July when it meets for quarterly review of monetary policy.
We saw good short covering in Reliance ind on teh back of the board meeting. The Bullish pattern is still not clear. Traders are adviced to keep their positions light, as we will see gap down opening today. If our index makes a new low then it is a serious matter. SGX NIFTY Future trading at 140 points down. We will definate head towards 4200 Nifty & 14000 in Sensex. This seems to be possible. ALL THE BEST.......
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