WINNING STROKES: THINK DIFFERENT:

The markets rebounded yesterday, in the mid-afternoon trade, after news was sent to the Paid Groups, that, "Nifty could rebound from the retracement levels". I think a temporary bottom has been formed which  needs to be confirmed, in the next two trading sessions. Moreover, RBI's 75 points rate hike is expected to tame the inflation-monster a bit,  and at the same time will not affect too much liquidity of the system, as the credit growth picture is not too much rosy.

Hence  now the banks will give more focus on Credit Growth and Bank counters are thus the obvious choice of the bulls, followed by.....(This portion for the Paid Groups)...

Kernex Micro Systems, Prajay Engineers Syndicate Ltd and Sanguine Media Services Ltd did well yesterday. There was a board meeting in Northgate Technologies Ltd....will get the details soon.....!!

Indian stocks on Friday rose to close in the positive after witnessing selling pressure in the day, when the Reserve Bank of India (RBI), which came out with its quarterly monetary policy, hiked the cash reserve ratio (CRR) to suck out excess liquidity from the economy owing to inflationary pressures.

The share market took the CRR hike quickly in its stride and rose soon after with the BSE Sensex rose 51 points to 16,357 while the NSE Nifty was up 14 points to end at 4,882.

“The market had entered oversold territory and this bounce was overdue,” said Technical Analyst Mitesh Thacker.
Analyst Dipan Mehta, member of the BSE and NSE, said the current bounce-back could gain further momentum on Monday if the US markets were stable.

“I expect the market to recover back to its earlier levels,” said Sudip Bandyopadhyay of Spice Finance. “Some of the market reaction recently was overdone. Despite concerns over RBI’s monetary tightening and policy change in the US, funds for India or other developing countries will continue to come. The fundamentals in this market have not changed, the modus operandi or the structures through which the money was coming into India will change so it is period of re-adjustment.”

He hailed the RBI’s CRR hike and said the central bank was doing a good job balancing inflation and growth.

He added that post the correction, many stocks were again looking attractive and that it was a good time for retail investors to start buying. (With inputs from the internet).