A smart recovery has been there in market after the central bank maintained a status quo on repo rate;
real estate stocks gained on the back of its decision to allow banks to invest
in REITs. Market ended the day on a lower note, but not before staging a
recovery from the day’s low post the RBI’s policy announcement. The Street had
factored in the central bank’s decision. A rally in real estate stocks could
have helped in the recovery. The Reserve Bank left its benchmark lending rate
unchanged at 6.25% on Thursday for the third policy review in a row citing
upside risk to inflation. It however increased the reverse repo rate at which
it pays to lenders by 0.25% to 6%, narrowing the policy rate corridor. Given
the upside risks to inflation and excess liquidity in the system, the repo rate
have been retained at 6.25% but the reverse repo has been revised
upwards. The Sensex was down 46 points at 29927, while the Nifty was
down 13 points at 9251.
If the
uptrend persists, short-term targets will be in the 9275 zone. Obviously every
trend following system would recommend staying long. In technical terms, all
trends (short/ medium-term and long-term) seem strongly bullish despite the
probability of a further short-term correction on profit-booking.
More about intraday tips on Google +
Resistance: 9275, 9300, 9330
Support: 9175, 9150, 9125
No comments:
Post a Comment