Fed in an unprecedented move, has again cut the interest rates yesterday to boost the US economy. World markets were waiting for this news and hence markets were choppy all over the world till yesterday. NOW, the news is out, what next?
From an Indian perspective, more FII money will enter into Indian markets, weak dollar means strong rupee and so for all companies dependent on dollar rates, this is a negative news. IT companies, already under tremendous pressure because of rupee appreciation will have to invent new strategies to cope up with problem.
Indian markets may stabilize in the coming days. There is Reliance power listing next week and today is the day of derivatives expiry. Budget expectations will start from next week. So there will be positive news in the coming days and hence market will become more tradable without huge swings in either direction. I guess market will recover today evening unless there is a surprise from Asian markets.
Voltas and Bombay Rayon may be good derivatives trading picks, only on the buy side. Voltas can be bought at around 200 with a strict stop loss at 190 for a short term target of 220. Bombay Rayon can be bought at around 285 with a stop loss at 275 for a target of 320.
Reliance Power IPO allotment is completed and those who have applied for 225 shares will get 15 shares.
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