30 Sep, 2014 (8:10AM IST)
Will the RBI increase its interest rates today?
I’m just speculating this as USD keeps rallying against the Indian rupee. It is inching closer to the mark of 62, with last closing at 61.68. This kind of activity hints that market movers are buying dollar against rupee, believing that rupee is about to have some negative news.
As I said, it is just speculation on my part. If it comes true, I’ll pat my own back and brag some more 🙂
If it doesn’t then I’ll preach you about not to believe in market rumors 🙂
Nifty traded mostly range bound in its last session and closed after some recovery from the day’s low levels. SGX Nifty is trading negative once again but like previous sessions, I’ll ignore this index as SGX Nifty is currently following Nifty.
Indian markets will wait for the RBI’s policy announcement today, expected to come at 11 AM IST. Trading pattern in the opening hour could see some volatile movement, but after that, markets might remain slow paced and narrowly range bound till a few minutes before the policy announcement. No change in policy will make markets go back to trade in global cues. A change will create bigger movements based on the positive or negative impact on markets.
A busy session ahead for Indian markets as these markets have a short week and long holiday ahead.
Expect volatile and range bound session in the first half. Indian markets will follow global trading cues in the second half. Nifty’s immediate range will be yesterday’s high and low levels.
Good luck, trade carefully, enjoy another volatile day in stock markets today!
See you later.