SHREE GANESHAY NAMAAH !

Breathing space: Experts say RBI may hold rates in Jan too

Nifty ends below 4700: Experts see more downside

Nifty closes at 25-month low; IIP nos, global cues to blame




Sebi please help! Bears are attacking my stock












RBI sets up working group to improve liquidity


Stock To Watch

Ster Tech (532374) CMP 30, SL 28, Tgt 33 / 36 / 39 In Coming Days !

NIFTY FUTURE CHART :





Monthly (2011) : 
Open : 4978.45
High : 5134.65
Low : 4624.50
Close: 4643.15
Avg. : 4845.19

NIFTY FUTURE 

R5 : 4803
R4 : 4760
R3 : 4726
R2 : 4703
R1 : 4678

CMP: 4643.15

S1 : 4623
S2 : 4592
S3 : 4552
S4 : 4501
S5 : 4450

Market Updates : 

Right from the beginning, there was a constant flow of bad news this week. The negative industrial production growth, core inflation coming in higher than expected and an uneventful RBI credit policy meet pushed Indian equities to fall by over 4.5%. The volatility in currency and commodity markets worldwide further quickened the slide.

Over the last few days, several analysts had predicted new lows for the Indian market. Those worst fears have come true.

Despite RBI's policy on expected lines and flat global cues, the Nifty broke below the 4,700 mark and closed at 4,650, down 94.75 points, the lowest level since November 2009. Meanwhile, the RBI acted along expected lines. The central bank left repo and CRR rates unchanged. It also hinted at a policy reversal in future.

It was expected but now it is official. The Reserve Bank of India (RBI) has at last paused in hiking rates in its mid-quarter credit policy review. Experts feel that the central bank is likely to continue its status quo in January too.

Cash reserve ratio (CRR) has been kept unchanged at 6%, repo rate unchanged at 8.5%, reverse repo at 7.5% while SLR is at 24%. Consequently, the marginal standing facility (MSF) too remains at 9.5%.

The Reserve Bank of India (RBI) said on Friday that it has set up a working group to examine and suggest ways of increasing secondary market liquidity in government bond and interest rate derivative markets.

The working group will comprise representatives from the market and the RBI, it said in a statement.

It will also study factors affecting liquidity in GILTS and suggest ways to strengthen futures market.

Earlier in the day, Reserve Bank Governor D Subbarao said he cannot speculate on when he will start cutting policy rates, but assured that the central bank will ensure that there is enough liquidity in the system by conducting open market operations.

Sensex, Nifty tumble to 2-year lows; breadth weak

Market closes at 25 month low

Stocks may get support on expectations of RBI rate cut

The Reserve Bank of India (RBI)'s announcement after a mid-quarter monetary policy review on Friday, 16 December 2011, that its future policy action will be to reverse the monetary-tightening cycle due to the risks to growth, could provide support to share prices which have been battered over the past few months. The RBI has raised rates 13 times since March 2010.

Traders will start building positions based on Q3 December 2011 results which will start trickling from the second week of January 2012. As per reports, advance taxes for the third quarter from corporates headquartered in Mumbai have risen 10%. Cements and pharma companies have reported surge in advance tax payment for the third quarter. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.

Any redemption pressure for European funds in their home countries amid the ongoing sovereign debt crisis may trigger forced selling of shares by foreign funds in emerging markets, including India. FII inflow in December 2011 totaled Rs 1087 crore (till 14 December 2011). FIIs had sold shares worth a net Rs 4197.90 crore in November 2011. FII outflow in calendar 2011 totaled Rs 1725.10 crore (till 14 December 2011). A steep slide of the rupee against the dollar over the past few months has further eroded the valuation of shares held by foreigners.


Note : Data From Capital Market And Money Control !

Note : Kindly Trade With Stoploss !