The much awaited RBI policy comes and goes, re-read our yesterday posting.
1. What is not said is more important than what is said.
2. It is not the news, but the reactions to the news.
2. Focus on Digital Space and regulation, you got lots on this fron too.
Some cryptic messages form the policy.
1. Liquidity is ample contrary to market perceptions we did two VRRR (clearly suggesting no rate cuts.
2. Global path is still not to cut early, so that tells that no solace in borrowing the cues as nonpresent.
3. Will remain nimble - cuts both ways. Concern on Food Inflation, while Core has more or less on descent (Contrary to the global sticky core and comfortable volatile component).
With so many restrictions on export of food items, either Rice, or Sugar (taking out on ethanol blending), the ground for inflation to fall further is limited room looks the assumption, not hawkish, but no room to be dovish.
All spaces that are prone for increase in cost of funding, or the scope for lesser asset accretion, more importantly private banks takes the beating. PSU's rule the roost. Save a few.
In terms of vital TA space HDFC, Bandhan, Kotak are below their 200 DMA and will continue to be so. PSU banking space rallied a lot and some corrective moves are not ruled out, but their long-term horizon looks healthy.
From the Graph, the Horizontal Line or the arrow is the line in sand for the bulls, hopefully we hold, else it would be deep dive.
Previous low of 44200-44600 is eyed, while we stay below 45400. Action in spaces to focus than as an Index.
1. What is not said is more important than what is said.
2. It is not the news, but the reactions to the news.
2. Focus on Digital Space and regulation, you got lots on this fron too.
Some cryptic messages form the policy.
1. Liquidity is ample contrary to market perceptions we did two VRRR (clearly suggesting no rate cuts.
2. Global path is still not to cut early, so that tells that no solace in borrowing the cues as nonpresent.
3. Will remain nimble - cuts both ways. Concern on Food Inflation, while Core has more or less on descent (Contrary to the global sticky core and comfortable volatile component).
With so many restrictions on export of food items, either Rice, or Sugar (taking out on ethanol blending), the ground for inflation to fall further is limited room looks the assumption, not hawkish, but no room to be dovish.
All spaces that are prone for increase in cost of funding, or the scope for lesser asset accretion, more importantly private banks takes the beating. PSU's rule the roost. Save a few.
In terms of vital TA space HDFC, Bandhan, Kotak are below their 200 DMA and will continue to be so. PSU banking space rallied a lot and some corrective moves are not ruled out, but their long-term horizon looks healthy.
From the Graph, the Horizontal Line or the arrow is the line in sand for the bulls, hopefully we hold, else it would be deep dive.
Previous low of 44200-44600 is eyed, while we stay below 45400. Action in spaces to focus than as an Index.
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