Mr. Reddy did the unexpected with a twin dose of rate hike & liquidity mop up. The central bank hiked the repo rate, or the rate at which banks borrow short term funds from the RBI, by 50 basis points to 9%. The Cash Reserve ratio or the portion of deposits that banks have to keep with the RBI, was also increased by 25 basis points to 9% effective from Aug 30. Economists have started to lower company growth forecasts because investment plans of companies will be hit by higher borrowing costs. RBI's inflation rate projection for the road of this fiscal if at 7%.
Nifty next support is at 4115 i.e 20DMA. Sensex will take support at 13693. Sensex will open with gap up opening, as our markets are not bad. Global markets are up by around 2%.
If we consider the Fibonacci theory from the recent low of 3790 which was made on 16th July and high of 4539 made on 24th July, 50 retracement level is around 4160 in Nifty and in Sensex it is at 13822. Nifty took good support at the same but Sensex closed below the retracement level. According to me markets will bounce back from the same.
Nifty next support is at 4115 i.e 20DMA. Sensex will take support at 13693. Sensex will open with gap up opening, as our markets are not bad. Global markets are up by around 2%.
If we consider the Fibonacci theory from the recent low of 3790 which was made on 16th July and high of 4539 made on 24th July, 50 retracement level is around 4160 in Nifty and in Sensex it is at 13822. Nifty took good support at the same but Sensex closed below the retracement level. According to me markets will bounce back from the same.
3 comments:
thnx for the comments. r u in connect with the India market
thnx for the comments. r u in connect with the India market
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