Reaction on US Fed rate hike - Rohit Gadia, CapitalVia Global Research Ltd

Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd. CapitalVia

Federal Reserve raises interest rates for first time in nearly a decade. US Fed raised the interest rate by 25 basis points for the first time nearly in last ten year, as macroeconomic data were showing revival in economic situation. If we see history also the long term trend of the Indian market remained intact when US fed had increased the rate during 2004 and 2006, thus history may repeat itself again, in short term NIFTY is expected to show a bearish movement, as it would mean ill-liquidity due to pulling out of funds, or reduction in investment ratio by many FIIs. In this case we expect that NIFTY might breach the support of 7550. If NIFTY sustains below this level, it might show further downside movement up to the levels of 7200. For Indian investors this is a great opportunity to enter into the market at the lower levels, it presents a great opportunity to investors to buy some fundamentally strong counters. For investors who are already having position it is advisable for them to hedge their portfolios for the time being to safeguard against volatility.

Source : Equity Bulls

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