Technical view by Nooresh

RBI hikes rate by 25 bps – But Nifty from 4900 to 5100 since VIX alert

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 - 


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 +





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Article by Nooresh Merani

Nooresh has written 2532 articles.

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{ 8 comments… add one }
  • deepakgajra September 16, 2011, 13:20

    dear nooreshji,
    thxxxxx for updation,
    Berger Paints not holding abv 112 in last week touch and dowen game also erlier today touch 112.90 then comes dowen very sharp its nomber game or bullish treder accumelating very at 112+



    • nooresh September 16, 2011, 18:55

      Hi deepak,

      Well lets wait for dips to 102 to add more.

      Remain bullish on the stock. Will add more either at 102 or closing above 112

  • Yoovan September 16, 2011, 18:15

    Hi Nooresh,

    I know equities are the best assest class for long term. China had grown @ 8-10% in the last decade. But still the China Shanghai index trading at almost same levels during the past 10 years i.e delivered only 50% absolute returns in last 10 yrs.

    Was there any index spilt or any stock spilt in chinese index stocks are considered as price fall
    The same case is with DOw Jones or FTSE
    Then HOW investing works

    • nooresh September 16, 2011, 18:54

      Hi Yoovan,

      Well the index is not the best way to look at it.

      Also equities do have a cycle and over the last 10 years there have been many companies who have grown 100 times also.

      So you need to do a little more research.

      For India we are up from 3000 -5000 to 15000-17000 today in last 10 years. So in the long run equities do perform but you also need to have a look at it.

  • Hari September 16, 2011, 20:35

    I am holding 1 share of ONGC…. please suggest sense pattern

  • srinath September 18, 2011, 23:42

    ka hari babu 1share mei kaheka riksss

  • Hari September 19, 2011, 20:06

    koi nai riksss srinathbabu… koi nai!


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