SMI – Market Outlook – 30th October

Posted By : Kishore B.S

Hi Friends !!!!

Yesterday the indian indices remained on the negative note ahead of the most awaited RBI event which is scheduled for today. The consensus among the market participants is a 25 bps cut and most of them are harping on the 50 bps cut since the growth rate has been lowered to 5.7% from the 6.5% mark by the RBI review yesterday.
The FMs speech yesterday was largely focussed on putting back the Economy on the growth trajectory and this is what has influenced the market participants that the RBI might harp with the 50 bps cut though some circles have been talking of no cuts or change policy largely since the RBI has been reiterating its call on the monster Inflation hawkish view which has not been taming for the last 1 year remaining stubbornly above the threshold of 7.5%.
The technical charts yesterday have indicated a change in the market direction indicating that the RBI policy is the key and more likely the markets could go into the correction mode if the 5630 levels are broken all the way down to the 5400 mark and if the RBI echos bullish stance to trigger growth we could easily reach the 5900 mark in a day or two.
Hence it would be ideal to take positions once the RBI policy is out and in the direction of the market trend for the ideal best returns ……. 

(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)


Team SMI

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