Volatility has come swooping down on Indian markets.
But I think that is good news for traders. As things stand, every dip should be bought. There is every reason why you should be on buying binge.
What should you buy? I think banks are going to give good returns if you buy the dips. Reason is not far to seek. RBI is most likely to cut rates by at least 50 basis pts.
Expectation of our Finance Minister is also that the rates should be lowered by RBI. And when Arun Jaitley expects something, RBI Gov is most likely to deliver accordingly..
As for position of one lot SBI Mar Futures held, do not despair. It was bought at 196. Check here
This position should be closed at 197/198 by Thursday.
However keep holding the position of SBI Apr Futures which we bought on 28 Mar 2016. This position was taken as per my recommendation given on 23 Mar 2016 in this post. One should hold this position for a target of 205.
RBI Monetary Policy Review is on 05 Apr 2016 and rate cut is what will give boost to banks. Let us wait and see what Raghuram Rajan does to propel banks and Indian economy in this coming RBI Review Meet.
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