FOMC Meet 18/09/2013

FOMC Meet Decision:
USA Fed took decision to no tapering as of now which create upside moves in US Market as well as Indian Stock Market.

Fed remain continue with Bond buying with the current rate of USD 85mn a month for now. This decision taken as positive and USA DJIA & NASDAQ are on record high. This decision push more liquidity into the USA economy and which expected to invested to the Emerging Economy (Brazil, Russia, India, China).

All have expected that Fed make decision for tapering but result comes unexpected and USA Fed no cut in stimulus package.

Fed Chairman Ben Bernanke refused to commit to begin reducing the bond purchases this year, and instead went out of his way to stress the program was "not on a preset course." In June he had said the Fed expected to cut back before year end.

Also Fed cut its forecast for 2013 economic growth to a 2.0 percent to 2.3 percent range from a June estimate of 2.3 percent to 2.6 percent.

This decision is positive for Indian Stock Market and we are seeing upside moves in it.

FOMC QE3

We have seen both side moves of market on 17/09/2013, one of the reason for that is QE3 tapering Federal Reserve Meeting at USA for QE3 tapering as USA growth is in line which attract them to take this step.

First those who not know about QE3, I am briefing you all:

When USA economy was in recession phase, government release Quantitative Easing 3 package which is popularly know as QE3.
In that package, USA buy bonds from citizen and available in economy which had enhance money supply in economy and that helps to USA economy to boosts again. And because of that we have seen from last many results and figures of USA economy comes positive.
Those money supply which enhance by USA, which invested among to the emerging economy such as India, China, Thailand, etc. so that FIIs of USA had much invested among our stock market so that our stock market had shows some rosy picture.

But Now what if QE3 tapering start----
It means that USA government will start selling those purchased bonds so that all investors who had invested among our emerging economy, for that FIIs have to withdraw invested money in market of emerging economy. So that its fear of suffer those stocks which have FIIs holdings.
All those FIIs of USA money they compulsory have to withdraw from our market.

Now these fear is prevailing in to market which prevent investors/trader to make positions.


So I advice to keep your safe-side and not go into market with high level of risk.
Meeting is arrange on 17/09/2013 and 18/09/2013, Its a two days meeting.

So now all eyes is observing closely & waiting to outcome of meeting for QE3 tapering.....

Visit following link for brief of Ben Bernanke (Federal Reserve Board Chairman)

http://www.youtube.com/watch?v=Lmd_CDwBXFs

Thanking You For Reading.....

Enjoy Market Moves, Update yourself.

ICICI Bank: Target is 920-902-870 with SL of 985.

Gap filling will be expected and that keep as target.

Enjoy Trade.

ALL THE BEST TO YOUR TRADE.

Technically Negative on LNT.

Target is 780-770.

Enjoy Trade.

ALL THE BEST FOR YOUR TRADE.......

Analysis done by me on 20th August, 2013.

Now, I have currently see that USD/INR cross 64 and Market is punished very badly.

Also Moody has downgrade 3 Banks Bank of Baroda, Canara Bank & Union Bank and also I heard that downgrade of India and From here If India will downgraded then it will be in "Junk Status.(BBB Rating)" 

I also found data like FIIs have sold Rs 15,600 crore of stocks since the beginning of June. So according to me, this continue to hampering market and our major benchmark reach to the 2 years low.

10-Years Bond yield also reach at around 8.5% so which also affect the profit of bank because people will attracted more towards bonds now on-wards. Am I Right????

Also National Spot Exchange (NSEL) settlement issue is not much effective and Forward Markets Commission (FMC)posted that only Rs 68 crore collected in NSEL's escrow account .

Thus, this all effecting Indian Market and Economy as well.

Some new points: As we have seen that NSEL defaulted everytime and also had taken loan from Financial Technologies. As per my views, Business of FT is very sound but can we take bet on its Fundamental???? I can't.... SEBI have renew license to MCX-SX with some regulations.
News is also that Mr. Jignesh Shah(FT) acquire stake of N.K.Protine, Ya, that is a correct decision as investors get back some of their amount if that stake will be going for liquidation.
As many of have made discussion on it so I am not saying more on it.

BUT for me important is QE3 at USA Fed meeting which is arrange on 17th & 18th Sept., 2013.
& RBI mid quarter monetary policy review arrange on 20th Sept.,2013 under the guidance of new governor of RBI Dr.Raghuram Rajan.....

Obviously If tapering will start as strong step and that surely affect emerging market and which can give as opportunity of see new high in bullion commodities.

Waiting for Results.....

  

 

Nifty Target 5740 on the basis of Candle, RSI, MACD Signal confirm.

Enjoy trading, Earn Return.

ALL THE BEST FOR YOUR TRADE.....

DLF Ltd. has potential upside target of 170-175. Trade on CMP. 

Also go with Call of 170.

ALL THE BEST with your trade.