Continuing with its anti-inflationary stance, the Reserve Bank of India (RBI) has raised the benchmark interest rates by quarter of a percent point on Friday, while keeping CRR rates unchanged.
The decision comes as the authorities struggle tocontrol near double-digit inflation, which isuncomfortably high for more than two years.
The repo rate now stands at 8.25%, while the reserve repo gets adjusted to 7.25%. The CRR remains unchanged at 6%.
There was a lot of scare about RBI hike and markets falling. In our previous update we mentioned that one should go ahead and buy staggered with a possible bounce back -
Maintain the view to be stock specific and look for opportunities till market continues to hold 4850/4910 levels.
Nifty range for near term traders 5020-5150 will decide the next move.
Gold as mentioned in our post can now start correcting if stays below 1770. Also from the day of updates its down from 1830 to 1765 already.
Stocks to watchout for :
Max India suggested a couple of weeks back has done target book profits - http://www.nooreshtech.co.in/2011/09/max-india-a-good-breakout.html
Maintain the view of long term buy on SBI on declines to 1850 or lower.
Eicher Motors and Berger Paints remain buy on declines.
Godrej Inds has seen a good recovery from 180 levels to 212 can look to book partial profits and maintain long term hold.
Watchout for cement stocks like ACC, Grasim and Ultra Tech to buy on declines. A good pair could be Short IT and Long Cements.
Punters expect sharp moves in DLF to 225 +
TECHNICAL ANALYSIS TRAINING SESSIONS SCHEDULE
HYDERABAD SEPTEMBER 17-18
BANGALORE SEPTEMBER 24-25
To know more on Discounts & Details contact: Kazim on 09821237002 or Asif on 09833666151