Tomorrow could be the day RBI will finally do rate cut expected by the Government. There must be lot of pressure on RBI from all corners for rate cut and it will eventually happen tomorrow. Market should cheer this. One can expect good rally after this announcement.
I am not an economist but major problem before RBI nowadays is of Rupee depreciation. RBI wants to control liquidity in the market. To control further downfall of Rupee, RBI must have swapped sufficient INR in past two days. By doing rate cut RBI could offer that money to banks at lower rates. By doing CRR cut also RBI could allow banks to keep more funds with them and in turn RBI will get rid of accumulated Rupee in past few days with RBI. This seems to be very short term measure and Rupee depreciation will continue after few days. Because money which will flow to banks will again come in to the system and supply of Rupee will again go up. In next 15 days Rupee will again cross 58 mark and FII will start withdrawing.
FII were sellers in cash segment even if market had gone up by more than 100 points on Friday. However, anticipating RBI policy they have bought huge in Future and Option segment. They will start liquidating after Wednesday/Thursday and there is high likelihood that market could again touch 5700/5750 levels very soon.
If Rupee improves investors will liquidate longs in TCS and TCS should touch 1425/1400 till Friday. Set limit 48 to 1460 PUT option.
Exit SBI strategy if SBI goes near 2240 levels in cash. Or at least exit long.
Hold adjusted LT strategy till expiry.
Tatamotors:
Buy Tatamotrs 310 Call June expiry between 1.80-2.15, Target 4.20/6.30
Maximum loss 1800-2000.
Buy Cummines in cash at market price for one month for at least 20% raise from here. This stock is at demand levels and not much further downside expected from here.
Disclaimer: This blog does not take any responsibility of your profit/loss.
I am not an economist but major problem before RBI nowadays is of Rupee depreciation. RBI wants to control liquidity in the market. To control further downfall of Rupee, RBI must have swapped sufficient INR in past two days. By doing rate cut RBI could offer that money to banks at lower rates. By doing CRR cut also RBI could allow banks to keep more funds with them and in turn RBI will get rid of accumulated Rupee in past few days with RBI. This seems to be very short term measure and Rupee depreciation will continue after few days. Because money which will flow to banks will again come in to the system and supply of Rupee will again go up. In next 15 days Rupee will again cross 58 mark and FII will start withdrawing.
FII were sellers in cash segment even if market had gone up by more than 100 points on Friday. However, anticipating RBI policy they have bought huge in Future and Option segment. They will start liquidating after Wednesday/Thursday and there is high likelihood that market could again touch 5700/5750 levels very soon.
If Rupee improves investors will liquidate longs in TCS and TCS should touch 1425/1400 till Friday. Set limit 48 to 1460 PUT option.
Exit SBI strategy if SBI goes near 2240 levels in cash. Or at least exit long.
Hold adjusted LT strategy till expiry.
Tatamotors:
Buy Tatamotrs 310 Call June expiry between 1.80-2.15, Target 4.20/6.30
Maximum loss 1800-2000.
Buy Cummines in cash at market price for one month for at least 20% raise from here. This stock is at demand levels and not much further downside expected from here.
Disclaimer: This blog does not take any responsibility of your profit/loss.
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