TRADE LESS ATLEAST FOR TODAY AND TRADE WITH STRICT STOPLOSS............
The BSE Sensex jumped 166.94 points or 1% to settle at 16,876.54, its highest closing level since 8 September 2011. The index jumped 212.80 points at the day's high of 16,922.40 in late trade. The index fell 164.03 points at the day's low of 16,545.57 in mid-morning trade. The S&P CNX Nifty jumped 63.15 points or 1.26% to settle at 5,075.70, its highest closing level since 8 September 2011. The Nifty hit a high of 5,091.45 and a low 4,967.45 in intraday trade. The BSE Mid-Cap index rose 0.55% and the BSE Small-Cap index gained 0.26%. Both these indices underperformed the Sensex.
The market breadth was positive. On BSE, 1,535 shares rose and 1,259 shares fell and a total of 99 shares remained unchanged. Among the 30-share Sensex pack, 20 rose and the rest fell.
FOR TODAY: Majority of Economists are forecasting another 25 bps rate hike from the RBI despite tell-tale signs of slowdown. However, a pause (if at all) from RBI will be accepted by markets gleefully. Market has already discounted 25 bps hikes in interest rate. However, if the rate hike is above the expected 25 bps, then we may see rate sensitive sectors like Auto, Banking, Capital Goods, Infrastructure etc. taking a dip. Moreover, what the RBI will say in its policy statement, especially hints for a pause for the next time or not, will be crucial.
WATCH 5115 ON THE UPSIDE. IF NIFTY TRADES ABOVE THIS LEVEL WITH VOLUME, WE MIGHT SEE NIFTY AROUND 5155/5177 LEVEL. ON THE DOWNSIDE, 5067 WILL ACT AS A MAJOR SUPPORT BELOW WHICH NIFTY MAY HIT 5031/5000 ON INTRADAY BASIS.
