Last week – review
In our Daily / Weekly view we did mention of Nifty likely to test 16752 level, tested yesterday. Banknifty underperform this week, an outperformance would have taken Banknifty to 36718 level which remains our target.
US Market after around 6% rally in previous week, this week ended with cut of around 1%. US market – focus continues around US FOMC meeting outcome and economic data.
RBI focus will also remain to keep 10-year G-Sec at manageable level as Government borrowing may increase by 1 lakh crores more due to announce in Petrol & Diesel excise cut.
For short term: Play via hedge position & in equity market – prefer to buy as per conviction in case of huge fall this week with medium to long term view. Market may give healthy bounce back. For sustainable bounce – Central Banks events this week – RBI MPC & ECB need to be turned out be positive. Going into event with positive view and aggressive long after confirmation from event outcome.