30 September 2015: Nifty Elliott wave analysis: Shocking policy saves possible fall on stock market. A follow up takes will decide market direction. Will bank reduce cost of capital?
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For 30 September 2015: -
On 29 September 2015, FII Sold INR –
1112.59 Crs and DII Bought INR 876.20 Crs
A good policy is the one which gives
shocks. It means that good policy have to be the one which people can remember
as make impact on economy as well as on the mind of the people. After a long it
was first one such policy and presented by the one. His name is Raghuram rajan.
Well, this kind of shock policy
making is known to have a very risky affair. This policy may be useless if
banks does not reduce significant rate to pass on to the costumer. So far, I do
not see much action from banks except SBI and Andhra Bank. In my view RBI will
go on wait and watch mode for next 5-6 months. Will banks reduce cost of
capital for business?
For today’s trading session, I have
simple take. I look for resistance again at 7900 to 7940 levels. Unless Nifty
crosses above 7940 we cannot assume much impact moving forward. Today is the
follow up day by funds after home work. If FIIs refuse to buy then result can
be a fall again. No levels as of now.
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Strategy for Nifty September future – I cannot say exactly how market
will react. It depends on many factors now. It has typical resistance at 7920
and then at 7970 levels. Very soon market will digest this rate cut and it will
go in parallel to global market.
S&P 500 (USA) – We got pause at 1870 levels. Is this fine enough to
say for a mini bounce before further big sell off? Somehow charts are suggesting
that some more fall might possible as of now. I am expecting a test of 1850 too
by this week. Weak bounce may not have good trading opportunity. I predict for
a phase of fear till fed finally act on rate hike.
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