RBI Credit policy

RBI Credit Policy :
• RBI keeps key policy rates unchanged
• Repo rate unchanged at 4.75%
• Reverse repo rate unchanged at 3.25%
• RBI expects GDP to grow at 6% this fiscal
• Raises inflation forecast to 5%
• Money supply growth seen at 18%
• Scope for banks to cut the lending rates

28-07-2009

Results today: BPCL, Grasim, HUL, 3i Infotech, ABG Shipyard, Bajaj Hindusthan, Everest Kanto, GMR Infra, GVK Power, HMT, Kingfisher, Kotak Mahindra Bank, McDowell Holdings, Mahindra Ugine, Mcleod Russel, Mercator Lines, Mundra Port, Neyveli Lignite, Religare, REC, Tata Tea G.M

Today RBI Credit Policy is alo there. Please trade with caution

Budget Strategy

Aggressive traders can buy 4300 PE and 4400 CE and try to sell both in profit on Monday as i expect market to swing both sides. My more bias is on negative side though. No matter what happens do not carry these positions post monday

Explaination:
Today call are positive and puts are also positive what does this imply ??? There are going to be sharp swings on both sides i suppose. As implied volatilities are high options premiums are also high. Traders who are long might not get a chance to exit also. Although Reliance slowly inching towards negative zone today... Remember it has become fundamentally weak also hence can prove to be a major laggard for Nifty. Plan to cover the Fiscal Deficit by selling Government stake in PSU's (Disinvestment lingo) can hit lots of hurdles... Who has got the money to buy stake in PSU's ? Who will buy as there is already a financial crunch ? Which bank will fund private players ? Last time i confirmed they told me entire world is in recession.