The inflation dips….

The inflation dips to 8.9 %(wow) but no joy to celebrate at the bourses. The fall in the inflation and the low commodity prices will give a breather to the FM and the RBI to chalk out a plan to go a rate cut. The RBI may for 50bps rate cut in CRR and repo rate cut to enhance the liquidity in the system. The stock markets are reeling under heavy Bear pressure and the global situation adding fuel to fire to kill our/ emerging markets as they are at the sprouting stage.

The immediate first aid help to markets considered completed when Nifty crosses the 2680 level. Today the strength in Nifty came from the lows with the SBI spike, HDFC recovery that came from its lows and the Bharti support may turn positive for tomorrow. The Reliance has to cross the last four days closing at 1135-41 level can support the falling market. The SBI has to cross the 1155-58 resistance. The ICICI bank will help the Index by crossing the resistance at 440 level. The ONGC has to cross the 690-93 level, the DLF may cross the 236-39 level. The above levels can be used as the first signs of revival and the move of HDFC and HDFC bank rise from their yearly lows provide strength to Nifty. As mentioned in the earlier posts, the techs are neutral in the Nifty direction.