RBI POLICY HOLDS KEY

(NIFTY OUTLOOK FOR 03 & REVIEW)

Nifty                               8797   -12

Astro Info :: Moon transits in  Pushyami in Cancer .   

Tithi : Sukla Pournami  ; Weekday:: Tuesday.  Combination of Thithi and week day is generally inauspicious.  .

Individuals born in Leo and Sagittarius   signs and in Bharani, Pubba and Poorvashadha   constellations    may remain cautious in their transactions.

Nifty Range of Thursday and Friday(Combined High and Low of these Two days i.e., 22 and 23 January) may be regarded as the reference range for the next Three weeks and can be expected to be bullish above the High of this range and Bearish below the low of this range. Now the range is  8866 and 8727 and Hence further bullish above 8866 and Bearish below 8727 and neutral in between these levels.

It is yet to trade below the lower end of the range.

Senstive time:: 9.15am to 10.00am; 11.00am; 1.50pm.,

 
 
 
 
Market Outlook for Tuesday, 03rd February, 2015  :: RBI Policy holds the Key ….!!!

Nifty traded in the negative for most part of the day and could not sustain at higher levels in the afternoon and closed with marginal negative bias. However, broader market was positive with Advance Decline ratio 1.4:1. Nifty spot is expected to encounter resistance at 8840, 8880 and find support at 8760, 8720 for  Tuesday.   While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market  is expected to trade in a zigzag manner and could encounter selling at higher levels. Further RBI Policy holds the key for very short term movements.
.

Trading strategy :: 

Opening hour / session is sensitive . Further Policy time 11.00 is also sensitive .,  1.50pm time is sensitive., As the short term trend is bearish, Sell on Rise is the preferred strategy (to be in line with the trend).  Astrologically, forenoon (10 to 12 ) is generally bearish and could recover in Second half of the day.

Breakout / Break Down Levels::

Breakoutlevel  is 8863and Breakdown level 8728 for Nifty spot for Tuesday .,  It is unlikely that both levels would be breached., If Breakout level is breached., It is a Buy on Decline with Low as Stop loss and if Breakdown level is breached, It is a sell on rise with high as stop loss. Alternatively, if Nifty is unable to cross the Breakout level, short positions, can be considered with Breakout as stop loss and unable to breach the breakdown level, long positions can be considered with Breakdown level as stop loss.

SENSEX SLIPS ON RBI POLICY BLUES

Domestic markets today hit over one-week lows with benchmark Sensex falling nearly 61 points to 29,122.27 and Nifty slipping 11.50 points to 8,797.40 on caution ahead of the RBI policy review tomorrow. Profit-booking in recent outperformers, disappointing earnings from some bluechip companies and mixed global cues also weighed on the stock market sentiment. The BSE Sensex opened lower at 29,143.63 and dropped further to 28,958.52 on fresh selling on weak Asian cues coupled with fresh foreign capital outflows. However, the barometer recovered from mid-day losses to end above 29K level to 29,268.13 before ending at 29,122.27, a net loss of 60.68 points or 0.21 per cent. This is its weakest closing level since 29,006.02 on January 22, 2015. It has now lost 559.50 points or 1.89 per cent in the two sessions. "RBI policy is being eyed by participants keeping rate-sensitives under pressure. The tone of RBI Governor and views on inflation and further rate cuts are awaited. Also, another setback for markets was weak manufacturing data for month of January," said WealthRays Securities, Director & CEO, Kiran Kumar Kavikondala. Manufacturing growth slipped to a three-month low in January -- after a two-year high in the previous month -- on slower pace of order flows from domestic and global markets, raising hopes of a rate cut by the RBI. However, some bankers said RBI Governor Raghuram Rajan may go for a status quo and would like to wait for cues from the Budget presentation on February 28 before undertaking any rate cut. Data showing that foreign portfolio investors sold shares worth a net Rs 771.55 crore last Friday also affected trading. Globally today, Asian equity markets ended mixed as data showing China's manufacturing sector remaining in a poor state dampened investor confidence. Key indices in China, Hong Kong and Japan ended lower by 0.09 per cent to 2.56 per cent while indices in Taiwan South Korea and Singapore moved up by 0.18 per cent to 0.95 per cent.