Daily Report · September 23, 2021

Morning Pulse 23/09/21

  • Sorry for not irregularly updating the blog, a lot is happening in personal life so kind of distracted.
  • Anyways Fed announced that they “may” start taper by Nov. So it’s not sure.
  • However the dot plot looks ugly 6 rate hikes expected by fed members over the course of next 3 years.
  • They also increased individual counter party Reverse Repo limit from $60bn to $120bn dollars. Which signals banks and other institutions using this facility have no other recourse of parking their funds other than RRP. This shows economy is in dumps and this liquidity has no real use in the economy.
  • So overall, a very ambiguous play from FED. Maybe they haven’t been done with their selling yet.
  • Nifty and Banknifty both consolidated in the last week. Today we may see rally ahead as now FED event confusion is cleared by confusion. Duh!.
  • More volatility and more consolidation ahead it seems. I shall resort to scalping till things become more clear through price levels.