Movie...Roller coaster ride...... Hero Ben B... Villain Raghuram R!!!!

Hi all,

RBI Mid quarter policy review :  Repo rate upped 25 bps, MSF rate reduced 75 bps

·         Repo rate increased 25 bps to 7.5% which was surprise to markets.

·         MSF rate reduced to 9.5% from 10.25%.

·         Minimum daily maintenance of CRR reduced from 99% of the requirement to 95%.

·         Focus on bringing inflation (esp retail inflation) to more tolerable levels.

More than half of yesterdays gains are wiped out as markets expected a cut in rates or at least a status quo....

The short term bias still remains +ve with /supports near 5950-5900-5840-5790-5740

I feel unless charts show anything else, every opportunity is a buying opportunity....

Remember.... Healthy corrections..... Make you walthy.......

Cheers

Hrishi