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.
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?
