April 2012
Trading levels 23rd / 27th April 2012
Bhagwan deta hai to chhappar phadke ….. Market was expecting a 25 basis points cut and some were ready even for status quo …. But RBI SURPRISED WITH 50 BASIS POINTS CUT…..
Forget about whatever else they said that room for further cuts is limited etc etc …. since the situation is dynamic and some things may change allowing RBI to cut rates further later in the year …. They decided to front-end the cut since our banks have so much inertia that a small 25 points cut would have resulted into nothing for end users.
The US and European markets were extremely volatile last week with extreme alternate bouts of strength and weakness. Our markets - bolstered by the RBI news - held their course and ended positive for the week.
Autos did very well with strong leadership from 4 wheelers. Banks were a bit wobbly but in the end it was their week and bank-nifty did not disappoint.
I expect Monday to start positive and we will again push towards 5350/5400 zone which has been the nemesis for last 4 weeks. We will need some strong results to cross that hump for sure.
Reliance has come out with tepid results that will not enthuse the market on Monday. So, we will depend on global cues which look little better for Monday.
Keep logged on to yahoo messenger for guidance related to investment levels on specific stocks. I will be putting some of those recommendations on my website also under messages tab as well.
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