Sunday, November 29, 2015

RBI Policy to dictate direction next week

The markets gained 1.1 pc last week to end higher. We are headed to a data heavy week with the RBI Meeting on December 1. In the immediate next week, I expect the markets to move higher from current levels.

1. The RBI Governor is unlikely to cut rates especially with US Fed meeting on Dec 16th. Rajanl ikes to surprise and may still cut rates.

2. The FIIs continued to be net sellers for the month of November. Hug FII outflows mean that the markets have declined that month.

3. The Gold scheme of the Government has been a success. Instead of ETFs the Investors will now buy bonds from the Government. India has Sovereign Gold Reserves which can be now be held against the Bonds.

4. The FIIs will go on vacation soon, and the Coal India FPO I believe will hit the markets at any moment. Fundamentals suggest a buy.

5. So we are now entering a quiet phase within the markets but at the same time some turbulence due to Central Bank meetings.

Long term view still remains the same, buy on dips.

1 comment:

  1. All your description is really very nice. It sounds and looks lovely! Thanks for sharing this blog article about RBI Policy .

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