Rate hike is not that great issue for me as it was to happen some time. The fact that RBI had to act fast which means the liquidity is still higher and inflation is rising and Indian Economy requires breaks for that matter. This is good for market as it indicate higher growth and hence higher earnings.

Market is not reacting to rate hike though there was knee jerk reaction. It is all about the position rollover and NAV as on the last day of the settlement because these will prop up the valuation of M F and FII going forward.

As mentioned in my earlier post that the Nifty will face resistance at 5250 levels. But the downside is nearly capped near 5150 levels.