Updates...

Markets...

Posting from home, Belgaum, market still looks to be in a symmetrical triangle as tops and bottoms are still tapering out. Nifty has handsome support at 5700, i.e. 50 EMA (Exponential Moving Average) and 5600 i.e. 200 EMA. Maintaining my previous view of break below these above mentioned levels should be short or book profit and break above 5900 i.e. present supply zone, should fresh buying.

RBI...

Today, a day before RBI's meeting on Monetary policy review for 2011, RBI has released Macroeconomic and Monetary Developments in 2010-11, and highlights are as follows...

Growth in 2011-12 is expected to stay close to the trend. Growth risks emanate from high oil prices and some moderation in investment. Business expectations surveys exhibit moderation. Survey of professional forecasters also predicts weaker growth and firmer inflation.

Inflation may remain elevated for some more time despite the current anti-inflationary bias in the monetary stance. Upside risks to inflation arise from high oil and other commodity prices, incomplete pass through and its likely impact on fiscal deficit, elevated inflation expectations and price stickiness.

Global recovery has advanced, but downside risk to global growth arises from oil prices and significant sovereign and banking sector default risks.

GDP growth during 2010-11 reverted to its recent trend, aided by a rebound in agricultural growth. Non-agricultural growth, however, was slightly below trend.

Industrial growth decelerated in the second half on account of high base effect and moderation in investment demand. Manufacturing activity was spread more evenly and the recent slowdown in IIP was exacerbated by volatility in output of a few industries.

Headline inflation exhibited strong persistence in 2010-11 due to supply-side shocks and gradual generalisation of price pressures.

Inflation drivers have changed over three distinct phases. Headline inflation during 2010-11 was impacted primarily by food inflation during April-July, by primary non-food articles during August-November and in a more generalised manner by non-food manufacturing articles since December 2010.