Nifty on 100 DMA - 8054

Dear All,

>>> What Happened to Indian Stock Market - What's the Impact <<<

Crude oil prices fell over $1 per barrel and below $60 for the first time since July 2009 in early European trading on Tuesday as Chinese factory activity slowed and stumbling emerging market currencies dented demand expectations.

The People's Bank of China has already lowered interest rates in order to boost growth.

In Russia, the central bank hiked its key interest rate by 6.5 percentage points to 17 percent on Tuesday in an attempt to halt a collapse in the rouble.

In India, the Reserve Bank has been intervening in support of the struggling rupee in recent sessions, triggered by a worsening trade deficit, and in Indonesia the rupiah dropped to its lowest value in 16 years against the U.S. dollar amid spiking emerging market volatility

Selling pressure in the Indian market has intensified in the last twelve sessions and the Sensex has corrected by nearly 1,850 points or 6.5 per cent even as crude oil prices have been on a decline.

The Nifty touched 100 DMA on intraday. You can refer the below chart for the same.

>>> FOMC Meet <<<

The Federal Open Market Committee (FOMC) will begin its two-day meet today. This meeting comes in the wake of tumbling crude oil prices. The Fed may recalibrate its stance on when it would start raising rates again. Analysts expect the Fed to dilute its stand to keep interest rates at near zero for a 'considerable time.'


So is it a Time for Worry :-

My answer is NO. No need to Worry at all.

Of course - Indian Rupee falling and hence stock market too crashing - But all due to Global Issues, Nothing serious after Newly Elected Modi - Has changed the view on every ones eye.

Earlier this month, analysts at top global brokerage such as Citigroup & Macquarie have raised their target level for both the Sensex & the Nifty for a period of next 12 months.

Goldman Sachs also joined the bandwagon of other investment banks such as Citigroup and Macquarie which have reiterated their positive outlook for Indian markets. The investment bank sees over 15 per cent upside in the year 2015.

Asoka Woehrmann, CIO, Deutsche Asset & Wealth Management, is very positive on India. "We are overweight by 5 per cent and I do think India is for us,

So far RBI kept the high interest rate - it could ease monetary policy early next year provided inflationary pressures do not reappear and the government controls the fiscal deficit which widened to a one-and-a-half year high of $16.86 billion in November.

"We are looking for a 75 to 100 bps rate cut between January and March next year. One thing though I would caution is that we tend to look at inflation and interest rates going together," says Ananth Narayan, Co-Head of Wholesale Banking, South Asia, Standard Chartered Bank.

Lets move on to charts ...

>>> Nifty - Hourly Chart <<<

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

Almost 61.8% correction and touched 100 DMA. Break below may test 7917. But we expect some recovery. Lets wait for the world market movement for it.