The Reserve Bank of India (RBI) on Tuesday raised repo rate by 50 basis points to 8 per cent and reverse repo to 7 per cent in its policy meet to arrest rising inflation.
This step is big jolt to Indian industry and stock markets therefore sharp fall was seen. Although such huge fall was unexpected but minor fall was seen and following precautionary lines were precautionary lines were posted at 08:07:00 AM today:-
"sentiment is heated therefore voltality after minor profit booking may be seen. As markets have to trade between resistances therefore fresh consolidation is must and long positions should be created after intraday consolidations"
RBI today step is problemsome for fundamentals and firstly sustaining beyond 5600 should be watched for next moves first indication.