With Retail Inflation high at 6.85 % RBI Raguram Rajan might not cut Interest rates
- For past 2 days Indian Share market has moved close to 1000 points on hope that RBI will cut interest rates as the Fiscal Deficit it well under control of 4%
- But the Fact is Rajan never said he will reduce interest rate if the Fisical Deficit is low.All he said was that RBI mail focus is to contain Inflation.
- With Retail Inflation high at 6. 9 % and RBI target of 5 % by March 2017, and 7 Pay Commission kicking in later part of the year, RBI will not be able to contain inflation if he gives a rate cut.
- With all this in place, RBI will not could not cut any intrest rate for 2016.
- So be cautious in Market and dont get caried away by Blue channel.
- Do your own analysis and if it feels right then invest your hard earned money or do a SIP.
What is Open Interest and Volume and how do they differ in Stock Market
- An open interest is the total number of contracts outstanding (yet to be settled) for an underlying asset. The quotes given above show us on August 9, 2010 Nifty futures has an open Interest of 32062850. It is important to understand that number of long futures as well as number of short futures is 32062850. This is because total number of long futures will always be equal to total number of short futures. Only one side of contracts is considered while calculating/ mentioning open interest. On August 8, 2010, the open interest in Nifty futures was 30959200. This means that there is an increase of 1103650 in the open interest on August 9, 2010. The level of open interest indicates depth in the market.
- Volumes traded give us an idea about the market activity with regards to specific contract over a given period – volume over a day, over a week or month or over entire life of the contract.
