As anticipated, the Reserve Bank of India (RBI) has kept the key rates, that is, Repo, Reverse Repo and the Cash Reserve Ratio (CRR), unchanged .
Nifty rang the morning bell with a downside opening gap today. The support which we had mentioned yesterday, turned into the resistance for the day as Nifty failed to breach the 7420. More details on this aspect of support turning into resistance is called Change of Polarity.
Moving on to the sectoral performance, the power sector, capital goods and banking sector were the major losers, though most sectors performed poorly.
The weakness seeped in from the Shanghai composite, and more so from the US markets as the Nasdaq composite closed 2% lower as expected.
The European indices are trading mildly weak and even crude oil has stabilized for now.
CHART OF THE DAY
Soon after the opening, Crompton Greaves dunked 20% lower due to its quarterly result, crossing the 52 week low. The reaction was due to insufficient disclosures and delay in sale of international assets . The volume observed was also extremely high and the momentum indicator, RSI broke down severely below the oversold support level 30, touching 19.
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