Weekly analysis : RBI PLAYS SPOIL-SPORT - 03/05/2013.
RBI PLAYS SPOIL-SPORT – 03/05/2013.
SENSEX NEEDS TO STAY ABOVE 19754.
Sensex seems to be playing catch up to the Nifty as last week the Nifty closed above the 61.8% Retracement level whereas the Sensex was still below it; this week the Nifty closed above the critical level of 5971, whereas the Sensex could not close above the corresponding level of 19754. But this week both the indices have managed to close above the 61.8% Retracement level. On Friday, the stage was set for the Nifty to climb higher but once again RBI played spoilsport. It cut the Repo rate by 25bps and left the CRR unchanged, which was on expected lines, but the regressive thinking (limited room for Interest Rate easing) of the RBI governor let the market down. Once again we emphasize that the market needs to stay above the important levels of Sensex 19754 and Nifty 5971, to negate the Bearish Head and Shoulders pattern.
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