My dear visitors, Indian Stock Market is looking for every opportunity for going down in EVERY negative news and will again come up for short covering & the same trend is continuing and will be continued for some more time.today (17th March) was a crucial day for Indian Stocks Market as R.B.I. Credit policy has been declared. for your information R.B.I. has increased the repo rate & the reverse repo rate by 25 B.P.S. respectively by keeping the crr unchanged. now, what is a repo rate, reverse repo rate and CRR? Repo Rate: repo is the rate at which Banks borrow money from reserve Bank OF India (R.B.I). Reverse Repo Rate: Reverse Repo is the rate at which Banks lend money to R.B.I. CRR (Cash Reserve Ratio): CRR is the zero interest deposits that banks are keeping with R.B.I (Mandatory). So increment of repo & reverse repo rates doesn’t matter so much with most of the corporates and ultimately to the stock market. it is the crr, which really matters to some extent. in fact some of the Banks, like HDFC, ICICI Bank, HSBC They neither borrow money from R.B.I. nor they lend money to them. also now IT Depends, whether individual Banks are increasing their interest rates or not, which may affect the company’s growth and ultimately the Stock MArkets. but it is the public (Investor’s/Trader’s) sentiment which actually use to reflect negatively towards the Stock Market. From tomorrow onwards till the commencement of the corporates forthcoming quarterly results (which are going to be declared very soon), the actual test of the indian stock market will be started and any positive news (results) will super seed the present negative factors, that is Middle East/Libya/Japan crisis and of course the rising crude oil prices. so for the time being,try to restrict your trading in such a way that you can protect your capital for good time. It is still advisable to stay away from f&o segment until unless spot nifty cross and sustain 5745. today’s moral: “market is just like an ocean & the trends are like the waves of the ocean . so don’t go against the trends and be with them”
“DON’T OVER TRADE NOW & TRY TO PROTECT YOUR CAPITAL”
“ALWAYS STAY COOL & DON’T BE PANIC-STRICKEN”
“REMEMBER MARKET STABILITY WILL BE BACK ONLY AFTER 5745 OF SPOT NIFTY”
FOLLOWING STRATEGY IS STILL VALID FOR THE TIME BEING:
(1) Sell in every abnormal rise.
(2) Buy in every abnormal fall.
(3) Book your profit in every step.
(4) Buy and Sell firmly and promptly without fumbling.
(5) Use strict stop loss and avoid taking un-necessary delivery.
(6) It is also advisable for the traders with small capital to quit the market everyday after making a reasonable profit. and always follow the footprints of Spot Nifty as mentioned below.