RBI POLICY HOLDS KEY...
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Inputs by
Dr.Bhuvanagiri Amaranatha Sastry
Astro Technical Analyst
Saketha Consultants, Hyderabad
sastry.saaketa@gmail.com
09848014561
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The week started off on a negative note with Nifty falling
by more than 2% and closing below 6150 mark. It is close to the lower end of
the last Seven week’s range and any further fall due to negative RBI Policy
could weaken the sentiment further and trigger a sell off. However, most stocks
are already very weak. PSU Banks and rate sensitive stocks were nervous ahead
of RBI Policy on Tuesday. Nifty spot is
expected to encounter resistance at 6175, 6210 and find support at 6095, 6060,
for Tuesday. While Global cues, Q3 results,
and Funds flow are expected to broadly guide the market
movement, based on the present market position , RBI Policy can be expected to
give direction to the market and any smart rise may be utilized to reduce long
positions in view of the overall weakness and the FOMC decision lateron.
Nifty
Review for Monday, 27th
January, 2014 :: Black Monday.... !!
Market opened weak following global cues and could not have
any meaningful pullback and traded with further bearish bias to close with a
loss of more than 2%. 45 of Nifty stocks closed in the red and braoder market
too was quite negative with Advance Decline ratio at 1:5.5. Bank and other rate
sensitive sectors remained very weak ahead of RBI’s policy on Tuesday. Realty,
Bank, Metal, Media , Auto and Infra indices were quite weak and no sectoral
index ended in the green. Hind Unileverl HCL Tech, Cipla and ITC managed to
close in the green while JP Associates, DLF, Ranbaxy, Tata Motors, Tata Steel
remained major losers among Nifty stocks. On the whole, it was another Black
Monday.
Among F&O stocks Glenmark, Hind Unilever, HCL Tech,
Cipla and ITC gained while JP
Associates, JP Power, HDIL, GMR Infra, IRB, IB Realestate and DLF suffered
major losses.
SENSEX RECORDS BIGGEST LOSS IN 2014
Hit by a global sell-off, the Sensex today
plummeted over 426 points, in the biggest drop in about five months, on
fears linked to US monetary stimulus tapering and investors turning
cautious ahead of the RBI policy meet. The sentiment further dampened
after the rupee slipped past the 63-mark versus dollar as a rout in
emerging market currencies continued. Reports said Argentina abandoning
support of its peso on the open market affected investors. After
opening nearly 235 points lower, the BSE 30-share Sensex remained in the
negative terrain throughout the day. It touched a low of 20,688.03,
before settling at 20,707.45, a drop of 426.11 points or 2.02 per cent
compared to Friday's close. This was the biggest drop since the
651.47-point plunge on September 3, 2013. Today's closing also marks
the weakest level in 3 weeks. ICICI Bank and HDFC Bank led 27 losers in
Sensex lower. Tata Motors and Tata Steel slid by over 6 per cent each.
A bout of uncertainty has gripped investors, especially those betting
on rate-sensitive banking, auto and realty, after the RBI Governor
Raghuram Rajan called inflation a "destructive disease" last week. Hopes
of a rate cut had faded after a panel recommended making retail
inflation a priority. "...there is an anticipation in the market that
RBI will keep its interest rates high in spite of some corrections seen
in the inflation numbers," said Jignesh Chaudhary, Head Of Research,
Veracity Broking Services. Overall, 1,952 stocks declined while 643
gained on the BSE -- meaning seven out of every ten stocks ended lower.
All 12 BSE sectoral indices ended in the red. Profit-booking by wary
investors ahead of the expiry of January equity derivative contracts on
Thursday was also one of the factors responsible for the down-trend.
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