The Indian market opens for trade this morning on a positive note ahead of the RBI Credit Policy today. Earlier, the US markets ended flat while most of Asian market closed today. Markets continue to trade firm after the RBI in the third quarter review of Monetary Policy cut the Cash Reserve Ratio (CRR) by 50 bps to 5.5% and thereby will infuse Rs 32,000 cr liquidity into banks. With core inflation still sticky, the RBI as expected left its policy repo rate unchanged at 8.50% for the second consecutive review after raising rates 13 times between March 2010 and October 2011. The reverse repo rate remains unchanged at 7.5%. The mood in the D-street was cheered by this good news and main line indices ended at their 10-week closing highs on today. The RBI’s decision to boost liquidity by lowering the cash reserve ratio would help revive growth, while Bankex index enjoyed the most by leading during the day. The market witnessed broad based buying across all the sectoral indices. Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange gained 1.43% yesterday. Interest rate sensitive banking stocks surged after the RBI cut cash reserve ratio (CRR) requirement for banks by 50 basis points to ease liquidity in the banking system. The Sensex closed at 16996, up 244 points from its previous close, and the Nifty shut shop at 5127, up 81 points. The CNX Midcap index closed with 1.7% gain while the BSE Small cap index was up 0.7% in today's trade. The market breadth was positive with advances at 770 against declines of 452 on the NSE
• Level wise, closing above the threshold 5080 and 5120 levels may extend support to the bulls in the forthcoming sessions.
• Nifty remained above its vital 9, 14, 50 and 100 day’s SMA placed at 4970, 4906, 4822 and 4946 however it is trading below 200 day’s SMA placed at 5211.99.
• VIX, the barometer of uncertainty, closed at 21.42 little below from the last session’s closing of 22.14, thus it indicates lesser than average volatility in market in the forthcoming sessions.
• RSI (14) for the session was at 72.36 levels and MACD closed above the signal line
NIFTY LEVEL
R1-5175
R2-5269
S1- 5080
S2- 5015
Stock Tips For Tomorrow:
BUY MARG @ 88.50 TGT 91 & 95 SL- 56
BUY TATAMOTORS FUTURE @ 222 TGT 225 & 229 HOLD FOR 2-3 DAY
