Don’t miss the latest developments in business and finance.

What stocks to buy ahead of Fed, RBI meet?

What stocks should you be buying ahead of RBI, Fed policy meets lined up ahead

Image
Manu Kaushik Mumbai
Last Updated : Dec 16 2013 | 1:13 PM IST
The Reserve Bank of India's (RBI's) mid-quarter monetary policy review and the US Federal Reserve's meeting which could take a call on tapering its 85-billion-a-month bond buying program, would be the key triggers for market this week.

The Fed will hold its two-day Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday to decide on the timeline for scaling back its monthly bond buying program also known as quantitative easing-3 (QE-3).

Wholesale inflation  or Wholesale Price Indexed-inflation surged to 14-month high of 7.52% in the month of November sparking off fears of a potential repo rate hike by the RBI in its forthcoming policy meet on December 18. Earlier, consumer price-indexed inflation (CPI) or retail inflation rose to a nine-month high of 11.24% in November, prompting many to think that RBI could raise repo rates by 25bps to check the inflation.  

Also Read

The US central bank is expected to decide a timeline for scalback of its stimulus package, termed Quantitative Easing-3. The signs of improvement in US economic data could see Fed announcing a withdrawal or a reduction in its $85-billion bond-buying programme at the FOMC meet.

So, both the above factors are being viewed as potential sell-off triggers. In such a scenario what stocks are placed in favourable position on  techincal parameters?  

SmartInvestor : Investors are jittery ahead of key data lined ahead. What are the levels to watch out benchmarks. Is it ok to go long at current levels?

AK Prabhakar : Both Nifty & Sensex has made all time high last week post which we have seen 4-5days of correction and i am positive of market till 5950 on lower side is not breached then target of 7000-7200 in next few months becomes possible. For next few weeks if 6141 holds and above 6200 then 6450 is target in 5-6days.

SmartInvestor : What is your take on GSK Pharma today? Should investors tender and how is the stock looking on technical parameters?

AK Prabhakar : GSKPHARMA has made all time high today and i feel stock has potential to cross Rs.3200 very soon.

SmartInvestor : Metal stocks are in focus after latest Chinese econmic data. Your take on Tata Steel ans SSLT. Your top picks from there?

Click here for more...


More From This Section

First Published: Dec 16 2013 | 12:26 PM IST

Next Story