RBI's credit policy today

The Indian market has been rangebound over the last many sessions. After a mildly bullish trade on Friday, the equity benchmarks witnessed lacklustre activity and closed marginally in the red on Monday. The Sensex closed down 73 points at 19,244.42. The Nifty ended at 5,857.90, 21 points below its previous close. The market will closely watch the Reserve Bank of India’s mid-quarter monetary policy review today. According to CNBC-TV18's poll, 70 percent of bankers and economist expect the Reserve Bank to cut cash reserve ratio (CRR) by 25 to 50 basis points. Only 30 percent expect RBI to keep the CRR unchanged. Most don’t believe the Reserve Bank will cut policy rates. Infact 90 percent said no repo rate cut. However, there is unanimity that rate will be cut atleast by January. Majority expect 25 to 50 basis of repo rate cut before the financial year ends.

GOLD INTRA DAY

SELL GOLD 05FEB2013 31400 WITH SL 31425 TGT 31350/31300/31250 DEPEND ON TREND BUY GOLD 05FEB2013 ABOVE 31425 SL 31350 TGT 31500/31540/31600

Global & local cues that will impact Nifty today

In the US, the Dow and S&P 500 closed higher for the day and the week following an upbeat government jobs report and amid ongoing "fiscal cliff" negotiations, while the Nasdaq finished in the red, dragged by Apple's sharp decline. For the week, the Dow rallied 0.99 percent; the S&P 500 added 0.13 percent, while the Nasdaq fell 1.07 percent. The CBOE volatility index slipped And on economic data front, the monthly non-farm payrolls rose by a surprising 146,000 versus an expectation of 93000. The unemployment rate slipped to 7.7 percent in November. Meanwhile, the consumer sentiment index tumbled to 74.5 from 82.7 in a preliminary December. There are no signs yet of any breakthrough in the fiscal cliff logjam.. Instead in a clear indication of hardening of stance, house speaker and republican leader John Boehner said that President Barack Obama had decided to slow walk the US economy right off the fiscal cliff. European shares closed flat in volatile trading Friday following a pair of mixed economic reports from the US, while Germany’s lowered growth outlook put a lid on gains. In Germany, the central bank has cut its growth forecasts for the economy. The Bundesbank now expects the German economy to grow by 0.7 percent this year, down from its earlier forecast of 1 percent. The forecast for 2013 is more worrying. The Bundesbank expects growth of just 0.4 percent, down from the previous projection of 1.6 percent. Political uncertainty once again in Italy after Prime Minister Mario Monti said he is going to step down ahead of the end of this term. His decision to call for polls once the 2013 budget is approved after the party of former Prime Minister Silvio Berlusconi withdrew their support from Monti's government. Berlusconi also said that he would make another run for Prmie Minister in the next polls. Monti did not say whether he would run in the next election. Greece's debt buy back offer ended over the weekend with bankers and officials saying that the deal went well. Athens offered to buy back around 30 billion euros in bonds as it saw to lower its debt levels. According to sources, Greece raised about 25-27 billion euros and may re-open the buy back for a short period for additional bids from Greek banks to make up for the short fall.

NIFTY INDEX LEVEL TODAY

Nifty closed on a slight bearish note at 5907.40 So today the first resistance for nifty is at 5924 level. Next resistance ranges are at 5945,5970 levels. On downside first support is at 5890 level. Next supports are at 5868,5844,level.So today the main intra resistance are at 5945 and 5974 level and on downside be alert below 5890 and avoid longs if below 5868 level.

FDI in retail will benefit consumers, farmers, says PM Manmohan Singh !!!

A day after winning Parliament's approval to the decision of allowing FDI in retail, Prime Minister Manmohan Singh today said the move will benefit farmers and consumers and help introduce new technologies in agri marketing. He also said the decision to allow FDI was "supported" by farmers' organizations in Punjab. Speaking as a chief guest at Punjab Agricultural University's golden jubilee function here, he said FDI in retail will help introduce new technologies in agri marketing, and will "benefit farmers and consumers". The decision to allow FDI was backed by farmers' organizations in Punjab, he said at the PAU function, where he was honored with a Doctor of Science degree. Government had yesterday won the approval of Parliament to its controversial decision of allowing FDI in multi-brand retail with a motion against it being defeated convincingly in Rajya Sabha, as BSP voted in favor of UPA. 123 members had voted against the motion while 109 voted in favor after a debate during which the Opposition had attacked the proposal to allow 51 % FDI in multi-brand retail, while the government had strongly justified it saying it was in the best interest of the country. Speaking at the University, Singh asked leading farm varsities like PAU to gear up to meet the existing and future challenges in the agriculture sector. He said agriculture supply chains in India are fragmented and stressed the need for development of efficient and vertically integrated supply chains. Stressing that investments in backend infrastructure can help cut down loss of perishable crops, he asked Punjab "to take the lead in best practices of crop management". Singh also hoped that Punjab will fare better as 12th five-year plan has for the country as a whole "targeted 8.2 growth in the GDP and 4 per cent in agriculture".