Dr.Y.V.Reddy, Governor of RBI, has decided to leave the rates unchanged for now. All rates.viz., Bank rate, Repo rate and Reverse Repo rate. However, as he is known to surprise every one on the street decided to raise further CRR by 25 basis points apart from 50 basis points raised on 17.04.2008. This stance from RBI clearly sends a strong message that containing and bringing inflation to tolerable levels of 5 to 5.5%, without compromising on growth in the economy. RBI will continue to watch the inflation expectation and the actual inflation very closely from now on, shall take steps and might take even stronger steps to fight the raising inflation, which hurts all sectors and sections of society.
There is a relief rally on the markets, as the rates are left unchanged, however, technically 200DSMA is offering stiff resistance for now, markets will be volatile and might settle flat to marginally positive today, in view of another important event i.e., FOMC meeting and their announcements, late in the night, which will effect our markets on 02.05.2008, since our markets will be closed on 01.05.2008(due to a holdiday.."May Day") However, the trading range appears to have shifted from 4500 to 5000 to the next level of 5000 to 5500, the confirmation of the same will be known depending on how markets close tomorrow, being the last trading of April'2008.
More analysis of RBI policy and its effect on our markets in regular postings.
Tuesday, April 29, 2008
RBI announces further CRR hike of 25 basis points & leaves Rates unchanged!
Subscribe to:
Post Comments (Atom)
4 comments:
I Just wanted to know if all NSE stock options of AMERICAN style then How can one sell ITM call/put as there is very much possibility of being exercised and is it necessary to have stock equal to mktlot size before selling naked/call put in american style options?
Stock options are of American style, thus spelt as CA & PA which can be exercised at the end of the day, during exercise market.
Where as Nifty(index) options are of European style, thus spelet as CE & PE which will be exercised only on the settlement day, as per the final settlement price.
bkvrkrao
That I already know but if I sell naked ITM Call say for ntpc strike 200 and spot price is 205(if i thinks that stock will move to 195 within 1-2 days) then is there is chance that i can be exercised same day?
Please Look for this page
Home > NSCCL > Clearing & Settlement > Derivatives > Settlement Mechanism > Options Contracts.
There is concept called interim settlment and final settlement on expiry
Post a Comment