Monday, April 4, 2016

It is a Steep Climb to 18000 - But Dow is Doing Fine

US markets seem to be taking some time to reach 18000 in Dow. After all it is a steep climb that has to be negotiated. But have no qualms, Dow Jones is right on track to reach 18000.

Moment we find any signal of reversal, you will be intimated. Be sure of that. So for now keep holding your long positions till Dow Jones reaches 18000. 

Manner in which Dow reaches 18000 will decide the fate of Dow after 18000.

As for Indian markets, Nifty closed in the green today after trading in tight range. However Nifty is racing ahead to make a breakout from the present trading range.

Today Nifty closed at 7759. Tomorrow RBI review meet will give the decision on rate cut and also give out their guidance going forward.

In case RBI gives 50 bps rate cut, then Nifty will surge ahead to make a break out from its present trading range. 

However if RBI announces only 25 bps rate cut then we will witness a drop in the markets. With 25 bps rate cut we will witness Nifty move sideways in the range of 7700 - 7400 for some time to come.