Posted By : Kishore B.S
On back of this news, Rupee also showed stellar gains. It was trading sub 62 levels against dollar. This is all time high for rupee since 16th August.
Now the question is like the Feds will RBI also surprise the market. There are two points to ponder over. The first being any rate cut in Repo, CRR or SLR will further ease out the liquidity situation supporting the current rally. The other is the statement issued by the governor which will outline the future path of the RBI. This is Mr. Rajan’s first RBI meet. So, with a change in leadership the philosophy of RBI is also bound to change. It will be great to see how he tackles the huge expectation.
As of now markets have rallied. So, any new long position should be traded with caution. If tomorrow RBI surprises Nifty might rally to 6300 making all time highs. It is best to cover your short positions and sit out of the market. Tomorrow the policy is in market hours. So, till then Nifty will be range bound. Once the policy is out we can trade in the direction of the momentum but till then telling what RBI will do is purely guesswork.