Reserve Bank of India has announced its Credit Policy hiking hiked CRR by 50 bps to 7% from 6.5%. However, repo, reverse repo and bank rates have been left unchanged.

Market has taken the news with negative stance and the nifty that touched high of 46 points in the day registered a fall of 13 points.

Personally I don’t think, the reaction to CRR is justified as the GDP forecast has been retained at 8.5% and 4-4.5% as the medium term inflation target is also in line with the previous Govt policies, where as global inflationary pressures are stronger than before.

Rupee is still at 40.43 and is expected to strengthen thus boosting IT index. I personally think the fall is temporary and markets would bounce back. Reliance futures should bounce back. Reliance Industries share especially present good opportunity for short term holding and look for reliance august futures in the range of 1865.

Even Global cues are strong and Capital good, power, IT, banking and FMCG stocks present good opportunity, look for them at every dip in the market.