The RBI has thrown everything in its arsenal at stubborn inflation. But prices refuse to budge. The latest food inflation number, based on the wholesale price index, came in 10.6% higher from a year earlier. All eyes are now on the central bank, who meets 25 Oct to decide its latest monetary policy stance. Is 13 the lucky number for the RBI, or will it stop after a dozen rate hikes? 12 rate hikes and a 5% increase in policy rates have done nothing to dampen inflationary pressure. Since it hasn't succeeded at cooling inflation, maybe easing its aggressive stance to not damage growth further may be a better option.
But, since its prime responsibility is to tame inflation, India may not be out of the woods just yet.
We have interesting Expiry ahead as 3 Important events are scheduled ahead:
1. ECB Meet and announcement by France and German FM how will they save the EURO
2. RBI policy meet on 25th Oct to decide the Rate Hike. 25 BPS has been factored in the market.
3. The Spirit of Festival season ahead -- Diwali the Festival of Lights and Mahurat Trading session on 26 OCt
Lets see how Nifty looks technically before these important events.
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Rgds,
Bramesh
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http://www.brameshtechanalysis.com/
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