RBI hikes CRR by 0.5%, leaves other rates unchanged: Please use the buoyancy in the markets to exit or cut ur positions in the places where you are making profits, as the market looks choppy and wobbly; in the short term. The Nifty could tests 4200 in the near term....and worst case scenario could be 3800...Hence be cautious. Today's rise in the indices seems to be due to short covering, only: W S Industries Ltd (recommended to the Premium Group at Rs.52) hits the buyer freeze: Book Profits in Southern Online Bio Technologies Ltd at Rs.19.5:

Reserve Bank on Tuesday hiked by half a per cent, the amount of depositors money commercial banks need to park with the central bank to curb money supply but left other benchmark interest rates unchanged. With inflation hovering within its medium-term target of 4-4.5 per cent, the central bank pressed the pause button on any hike in key rates, barring the hike in Cash Reserve Ratio by 0.5 per cent to 7 per cent to suck out excess liquidity. report continued below RBI maintained the economic growth projection at 8.5 per cent for 2007-08, and said there was no change in the outlook for inflation. The hike in CRR, the second this year, has belied the expectations of the common man for an immediate fall in interest rates in view of easy liquidity position and low inflation. Inflation stood at 4.41 per cent as of July 14, well under the RBI's medium-term target. The apex bank, in the quarterly review of monetary policy on Tuesday, also removed the Rs 3,000 crore cap on daily reverse repo (overnight borrowing) transaction, the window through which it absorbs liquidity in a bid to check volatility in call money rates. This is seen as yet another measure to absorb the excess liquidity in the market, which was driving down call money rates to as low as zero per cent. As expected, it kept the bank rate unchanged at 6 per cent, repo (short-term lending) rate at 7.75 per cent and reverse repo rate at 6 per cent. Analysts said the RBI policy was on expected lines with interest rates almost peaking and inflation moderating.

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