The D-Day which the Indian Inc and the market at large has been looking forward to has finally arrived today, with the hopes that there would be cut in CRR & Repo to help the waning Economy after the Central Govts step to reign in its Finances.
The markets have already factored in cut of 25 bps in Repo rate, which will be the first such cut in the last 9 months by the RBI unless it changes its hawkish stance, surprising the markets. Though most of the participants have been expecting a 25 bps cut, yet there could be a surprise googly also by Duvvari, without any cuts, as has been his stance for the last one year, due to his Inflation fears.
If the Inflation fear, falters the Rate cut then the markets could bust today leading to the fall in the Indices back to the sub 6000 levels, and any surprise above the expectations of the 25 bps could booster the Indices to above the resistance level of the 6100 to hit the 6180 mark, marking the high for the last one year.
The charts are Indicating that there might be some surprise in the offering by the RBI and on the basis of the charts a buy can be initiated with strict stoploss of the 6000 mark and the target of the 6118-6176……
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)