CPI inflation fall to act as major trigger as Nifty now gets ready to scale 15500-15,550, Anil Singhvi says
CPI inflation is at a 16-month low at 4 per cent. So, how will this bring comfort to the Reserve Bank of India (RBI)? How important is this for the stock markets and what will be the impact on Bank Nifty? Zee Business Managing Editor Anil Singhvi gives his take
CPI inflation is at a 16-month low at 4 per cent. So, how will this bring comfort to the Reserve Bank of India (RBI)? How important is this for the stock markets and what will be the impact on Bank Nifty? Zee Business Managing Editor Anil Singhvi gives his take.
The CPI inflation in January has reduced from 4.59 per cent to 4.06 per cent. The Market Guru said that inflation numbers coming down is a welcome news and this will give a lot of comfort to the banking regulator. He said that even the RBI Governor had indicated that the food inflation will come down.
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It is a matter of big relief to see the inflation coming down by almost 1 per cent, he said. He said that the December 2020 IIP growth was 1 per cent from the negative 2.1 per cent in November 2020.
He said that if the inflation is in control then there will be no need to increase the interest rates.
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निफ्टी की 15500-15550 की तैयारी
— Zee Business (@ZeeBusiness) February 15, 2021
Singhvi said that the kind of push that is needed today for the markets is being provided by the news around CPI inflation.
He said that the markets have not seen correction for more than 1.5 days and it is first time in four months that there has been a timewise correction, the Managing Editor said. The markets have traded in a small range for over 4-5 trading sessions.
However, the pricewise correction is same, he further said.
He said that the biggest comfort for Nifty has been that despite the correction over the 4–5-day period, it managed to close above 15,100 mark which gives a lot f comfort to the broader market index. This shows that the markets are not weak.
He said that the Nifty is now ready to make new lifetime highs after showing consolidation for 4-5 trading sessions. He said that Nifty is ready to scale levels between 15,500-15,550.
He also said that this will also bring comfort to the Bank Nifty.
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