RBI repo rate cut - Rohit Gadia, CapitalVia Global Research

In a big surprise for the markets, the RBI today cut the policy repo rate by 50 basis points to 6.75 per cent. The equity market which was in the red till the announcement was back in the black.

Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Limited said, RBI surprisingly cut repo rate by 50bps, a rate cut by 25bps was expected. Central bank today appreciated the policy action taken by the government and all the measures taken to make the economy stronger. Which in itself indicates a good synchronizations for the overall economic development by the central bank and government. now next target is to bring inflation to 5%. Also RBI has set road map to bring SLR down by 1% in a period of 1 year.

Market zoomed after RBI cut the interest rate by 50 basis points, CRR remain unchanged at 4% while Repo rate changed at 6.75 % , much awaited by the corporate's and investors. Nifty recovered the intraday losses of around 100 points and Banknifty also surged after opening gap down by more than 250 points. Nifty Future has strong support at the level of 7700, in near term we may expect some more recovery in it till the next resistance of 7930 and if sustains above this it may surge till the 8065.

Banknifty is also expected to move till major resistance of 16675 and sustains above this on closing basis, it may continue the bull run again, If global sentiments are also supportive. Support for Bank Nifty is 16640.

Source : Equity Bulls

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