SMI –20th September 2013 – Market View

Posted By : Kishore B.S

Hi Friends,

RBI surprised today with a 25 bps hike in the repo rate. This led to an instant carnage in dalal street with Nifty crashing 150 points in just a few minutes. The RBI Governor has made it very clear that containing inflation is RBI’s first  motto. So, such surprise rate hikes can not be ruled out in future.

The growth would be muted in the coming months. The festival season approaching us the rate hike will create a wave of negative sentiment. One should be clear that RBI is not there to please the market. This is a strong gesture issued.

So, it is very likely that we will fall again in the range of 5840 and 5900. So, all long positions should be closed.


Team SMI

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