Open above 10600, but shed 148 points in intraday, closed below the support level of 10530. Short term market trend looks weak. Intermediate trend remains down. Avoid trading , wait for current volatility to cool off :
Nifty opened at 10607.2 with a gap up of 109 points. The index made its intraday high near the opening tick at 10614 and started falling. Prices made it intraday low at 10446.6 and closed at 10476.7, down 21 points from yesterday. Nifty continues trading volatile. Intermediate and short trend is down now. We now have to keep patience, waiting for the market to calm down. There should be a trading opportunity once this volatility cools off.
Shares of rate sensitive sectors such as banks, automobiles and real estate were trading mixed after the Monetary Policy Committee (MPC), Reserve Bank of India (RBI) maintained status quo on interest rates. The RBI keeps repo rate unchanged at 6% and reverse repo rate at 5.75%. Repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
Today the gains were majorly contributed by MEDIA and REALTY whereas IT and BANK closed in loss. Still confusion in index, when any pattern develop, we can trade in the market.
The Dow Jones Industrial Average -0.08% slid 19.42 points to 24,893.35, after bungee-jumping a 500-point range during the session. At current levels, major indexes stand about 5% below last month’s record highs. Market valuations are expensive and need to correct. At the same time, credit conditions remain robust as the availability of money to borrow, spend and invest is strong. The market was positioned for great earnings, great growth, and no inflation or rates moving up to any meaningful degree. Now that Goldilocks environment is gone, and we’re back in a normal environment where we’re getting both strong growth and higher rates.
As we all know, market maximum time follow the International market levels, but it is quite possible that we can be decoupled from them after some time, because here growth is extraordinary comes from the MF market and huge inflows pumping up in the market from DIIs route.