Wednesday, September 17, 2008

Expect NIFTY to bounce back; FED will keep rate unchanged; Crude continued fall.

Once again we are in the situation when all the investors/traders are not looking towards their own local market but all eyes are at Wall Street. Inspite of Asian economy growing, India/China story unfolding, King is always a King - US remains and will remain in future the Centre of Power.

>>>>>On Tuesday, after looking at Asian market, India market also fell down but there was a bounce back with little positive clue from Europe, and expectation that FED will rescue AIG, finally we closed flat....

>>>>>HBJ Team is expecting this upward movement to continue further, we might see 40-60 points or more upside in Nifty on Wed.

The Nifty’s rebound from the day’s low of 3,920 to close at 4,072 is expected to continue with an upside limit of 4,200-4,300. However, the upmove largely depends on global cues.

The Nifty September futures closed on Tuesday at 4,098, a 24-point premium against a discount of four points yesterday.

Wall Street fluctuated in a wide range Tuesday after the Federal Reserve disappointed some investors by keeping interest rates unchanged, but also sent a signal to the markets that the economy is not in dire straits.

The fact that the Fed didn't lower rates was a sign that it doesn't believe the economy needs that type of stimulus. It reiterated that it believed its moves to inject more liquidity into the banking system to help struggling financial institutions would help them, and in turn the economy overall.

With the Fed's decision out of the way, Wall Street was still focused on troubled insurer American International Group Inc., the latest in a string of companies investors are worried could be undone by a shortage of cash.

- HBJ Capital Team

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