🎯 Must understand -
Before understanding why this bimonthly monetary policy is beneficial for PSU Banks and indirectly to the economy let's understand the simple meaning of REVERSE REPO..
Reverse Repo rate is the short term borrowing rate at which RBI borrows money from banks. The Reserve bank uses this tool when it feels there is too much money floating in the banking system. An increase in the reverse repo rate means that the banks will get a higher rate of interest from RBI.
Reverse repo is a monetary policy instrument which is used to control money supply in the system. The decision will decrease money supply, which will further help control inflation.
RBI also permitted Banks to invest in REIT’s and InvIT’s and though further clarity is sought on the mechanism in which this shall be adopted, it can still be sentimentally positive for listed realty and infrastructure players.
Nifty Outlook :
Nifty started to form lower highs from last two sessions and making a bearish candle on the daily chart. It has broken immediate support of 9220 as mentioned in the Morning Brief of 6th April. and now a hold below 9140 may drag it towards 9090 and 9020 levels. On the upside, Nifty has seen immediate resistance near to 9280 - 9290 zone.
Call writing at 9300 strike price, kept pressure at higher levels. Option data suggest Put writing at 9000-9100 strike prices. So, Option Indicative band is at 9000-9500. India VIX trades near 11.50(near the lower band). Amidst geopolitical concern and onset of result season implied Volatility could see acceleration in coming weeks.
Below 9090, is the zone to re-enter into the market those expecting the massive bull run ahead in coming years.
© Sharp Investment & Financial Advisers
No comments:
Post a Comment