Wednesday, September 18, 2013

Support 5800. Resistance 5985 & 6100

Dear All,

Fed likely to reduce bond buying :-

The US Federal Reserve is expected to begin its long retreat from ultra-easy monetary policy on Wednesday by announcing a small reduction in its bond buying, while stressing that interest rates will remain near zero for a long time to come.

Most experts are of the view that the US Fed won't take a hawkish stance on QE. They expect a tapering of about $10 billion, something which they say has been factored in by the markets.

Any adverse reaction and you might have a sharp rally or a sharp fall into the markets.

The Reserve Bank of India's new Governor Raghuram Rajan is expected to leave key policy rates unchanged in his first monetary policy review on Friday, and continue emergency cash tightening measures initiated in-mid July to stabilise the rupee, and check racing inflation.

Of the 52 economists polled, 50 expect the policy repo rate to remain at 7.25 percent, and 47 of 48 respondents see the cash reserve ratio, or the portion of deposits banks have to maintain with the central bank, unchanged at 4.00 percent.

The sharp depreciation in the Indian currency was largely due to speculation, ballooning current account deficit, weakness in domestic economy and strengthening of the US dollar.

Meanwhile, the appreciation in the domestic currency would be largely driven by the recent policy measures taken by the RBI, resumption of capital inflows, passage of economic reform bills, lower current account deficit (CAD) in FY14 and pick-up of economic growth momentum from the third quarter of this fiscal.

>>> NIFTY <<<

>>> Click the chart to see on full screen <<<

Said Yesterday 5800 Holding and today we saw a sharp bounce on the last hour of trading. Now 5985 and 6101 as important resistance. Lets See.

>>> BANK NIFTY <<<

>>> Click the chart to see on full screen <<<

Bank Nifty moved above 50dma and now facing key resistance 10495 or 61.8% Key Retrace. Cross above 10495 may see 11075. Let See.

>>>> ULTRACEMCO - As Updated Yesterday <<<

>>> Click the chart to see on full screen <<<

>>>Happened and Yet to<<<

>>> Click the chart to see on full screen <<<

Price touched a high of 1730 and yet to reach the first target. Expect more upside to come.