The Rally Continued for the second straight day with the NIFTY and SENSEX reaching for higher levels. The positive global cues helped it further to touch higher levels. With the credit policy due in some days the Nifty rallied 3 points to close at 5075 points. A rise of 166 points was also witnessed on Sensex which closed at 16876.
The market policy review is slated to come tomorrow the experts have framed their own outlook for the behaviour of the markets ahead. The general view of them all is that the key would be the momentum that could either make it or break it for the markets. The August inflation figures touched a 13 month high which has brought views from the experts that there might be a 50 bps hike in the rates which is certainly not a good news for the markets.
Since March 2010 RBI has increased interest rates for 11 times in order to check the rate of the price rise. The downside from these levels seems to be restricted till 5 or maximum 10% from here. But on a longer horizon it looks to be a bullish prospect for the markets with good bets on the public sector banks. With the global cues giving a positive turn on the major indices the markets can witness a good jump for the next few trading sessions.
Bell the Bull says: Betting on the Credit review it is to be seen how the sentiments of the markets react