THE POSITIVES : GREECE BAILOUT & MUCH ABOVE EXPECTATIONS IIP NOS.
THE DAMPNER : CHINA RAISES CRR BY 50 BASIS POINTS.
A minor bounce book had started to look more probable when the European Officials pledged to bailout Greece.The picture got more rosy come Friday afternoon with the much above expectations IIP data. The expectation was 12% and markets have delivered 16.8%. Beating the expectations with a 40% margin is commendable.However, such a number also solidifies the expectation of a Stimulus withdrawal in the Budget.
All in all, a decent positive opening on Monday was on cards.Then China stepped in and raised CRR by 50 bps.That is a second in 2 months, the last one being on Jan 12th. However, Goldman Sachs maintained its 11.4% growth forecast for China!
Recently when India raised its CRR more than the street expected the market recovered 400 points from intraday lows! Such are the ways of the market and hence one should ideally give time to the market to absorb the news.
Sugar stocks are looking good from a short term trading view. The IT pack is firming up too.
I would be more comfortable posting the levels after market starts on Monday
Have a great trading day,
Reagrds,
Rahul T
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