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The Reserve Bank of India on Tuesday left the key policy rate unchanged in its mid-quarter (December 2012) monetary policy. With this status quo in the policy action, repo rate stood at 8% while reverse repo was at 7%. Cash reserve ratio (CRR) also remained at 4.25%.
RBI’s policy rate changes at a glance
Date
Reverse Repo
Repo
SLR
CRR
December 18
7
8
23
4.25(unchanged)
October 30, 2012
7
8
23
4.25 (-25)
September 22, 2012
7
8
23
4.50 (-25)
August 11, 2012
7
8
23
4.75
April 17, 2012
7 (-50)
8 (-50)
24
4.75
March 10, 2012
7.50
8.50
24
4.75 (-75)
January 28, 2012
7.50
8.50
24
5.50 (-50)
October 25, 2011
7.50 (25)
8.50 (25)
24
6
September 16, 2011
7.25 (25)
8.25 (25)
24
6
July 26, 2011
7.00 (50)
8.00 (50)
24
6
June 16, 2011
6.50 (25)
7.50 (25)
24
6
May 03, 2011
6.25 (50)
7.25 (50)
24
6
March 17, 2011
5.75 (25)
6.75 (25)
24
6
January 25, 2011
25 (5.50)
25 (6.50)
24
6
*The bracketed figures show repo, reverse repo and CRR in percentage term.
The Lok Sabha today passed the Banking Bill and the Companies Bill.
The Baking Bill was passed after the government gave in to the BJP’s demand to drop the controversial forward contract bill from the amendment, paving the way for issuance of new licenses and consolidation in the sector.
Regarding the Companies Bill the government said the aim is to protect interest of employees and small investors while encouraging firms to undertake social welfare voluntarily instead of imposing that through “inspector raj”.
Replying to a debate before the bill was passed by a voice vote, Corporate Affairs Minister Sachin Pilot said through this new legislation, the government intends to make India an attractive and safe investment destination.
He said special courts would be set up for speedy trials, as an assurance to investors that cases will not linger on.
“The new clause (on forward trading) will not be pressed. We will debate the rest of the Bill,” Finance Minister P Chidambaram, Finance Minister, told the Lok Sabha when discussions commenced on the Banking Bill. The introduction of this clause was opposed as it did not form part of the Banking Laws (amendment) Bill 2011 that was referred to the Standing Committee on Finance.
The bill aims to draw foreign investment to the banking sector by increasing shareholders’ voting rights to 26 percent from the existing 10 percent. This is expected to lead to consolidation in the industry, as it will increase investor interest in private banks. Secondly, it will also encourage foreign banks to expand in India by buying stakes in local banks, as they would have greater operational control over their management.
While defending the case for the bill, Chidambaram also said India needs world-class large banks, thereby making the case for consolidation and expansion even stronger.
Chidambaram also said the government plans to infuse Rs 1500 crore into public sector banks to ensure expansion. He said that at least 6,000 new branches will be opened and around 84,000 people will be recruited for the same.
“We have to infuse capital in the banks so that they can lend. The funds will be infused by bonus shares and rights issue,” he said.
Post the passage of the bill, the Reserve Bank of India can get moving on issuing new banking licenses to private banks. The process for inviting application for setting up new banks could start as early as January 2013.
India’s banks are in need of funds to expand operations and meet enhanced capital requirements under Basel-3 norms.
RBI had formulated the draft rules for the issue of new bank licenses to private banks in 2011, but held back on their implementation, urging the government to first get the banking bill approved by Parliament because it said it needed more powers.
However, the minimum capital requirement and guidelines for setting up new banks are still not known. Only those entities that the RBI deems fit and proper will be allowed to set up shop in India. Sources, however, told CNBC-TV18 that preference will be given to non-banking financial corporations as applicants for new licenses.
The proposed law will also give the RBI the power to inspect the books of banks’ associate companies.
Meanwhile, Chidambaram also said that the much-awaited insurance bill and land acquisition bill will not come up during the Winter Session of Parliament. The two have been deferred till the Budget Session.
Further, clarifying on the Banking Bill, Chidambaram said the Competition Commission clause in the Banking Bill has been modified which allows the Reserve Bank of India to remain the banking regulator, while the Competition Commission of India (CCI) would regulate mergers and acquisitions. The Finance Minister, however, clarified that the banking sector is not outside the CCI’s purview.
The Banking Laws (Amendment) Bill, 2011 will now be taken up for discussion in the Rajya Sabha, the upper house of parliament.
FICCI chief Naina Lal Kidwai welcomed the move and said the government has given a very important signalling by passing the bill as bigger banks are essential for more competition in the banking sector. “There will be many takers for new licenses. Banking is a sector that can attract private equity,” she said.
This is the 14th Day course in a series of 60-Days called “Technical Analysis Training”
You will get daily one series of this Training after 8 o’clock night (Dinner Finished)
Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)
Island Bottom Chart Pattern
Effect of Inside Bar
A strong Island Bottom is a bullish alert indicating a possibility reversal of the current downtrend to a brand new uptrend. The pattern is definitely an sign of a fiscal instrument’s SHORT-TERM view.
Story
The Island Bottom occurs whenever the price “gaps” below a particular price number for an amount of days and additionally then is affirmed once the price “gaps” above the initial number.
Statistics–Bottoms
Percent of successful formations – 85% Average rise of successful formations – 34% Likely decline – 20% Failure rate – 17% Average time to throwback completion – 9 days.
Island Reversal Chart Pattern Example
Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.
Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.
Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
This is the 112th Day course in a series of 60-Days called “Technical Analysis Training”
You will get daily one series of this Training after 8 o’clock night (Dinner Finished)
Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)
Inside Bar Chart Pattern
Effect of Inside Bar
Any Within it Bar (Bullish) indicates a possibility reversal of the current downtrend to a new uptrend. The pattern is definitely an sign of the fiscal instrument’s SHORT-TERM outlook. Two-bar patterns mirror changes in investor psychology which have a very short-term impact upon future prices – usually less than 10 bars. Often the immediate influence is trend exhaustion and additionally oftentimes, a reversal. For investors looking for evident entry and exit aspects, our patterns provide well. These are normally not suitable because signals for long-term investors except if viewed as monthly taverns.
Story
Any Inside Bar is a reversal formation characterized from a bar which forms totally in the trading array of the above bar. Inside Bars reflect a balance stuck between buyers and sellers following a sharp up or perhaps down move, and is at times later on solved from a change in trend.
Trading Factors Inside Bars can feel either Bullish or perhaps Bearish hinging on the way of the inbound trend. If in case the inbound price trend is up, then upon identification of a Inside Bar, taking a short position or perhaps selling a long position is advised. Conversely, if the inbound price trend is down, then on recognition of a Inside Bar, taking a long position or perhaps closing a short positioning is recommended. Seek out verification wearing a trend-line break.
The degree that the price bars and volume qualities match this description could likely feature a bearing in the resilience of the post pattern price movement. Good trading training dictates which our signals cannot be utilized in isolation: fundamental information, area and marketplace evidences and various other technicals for example support/resistance and momentum tests must be utilized to support your trading decisions.
Factors that Supports
The sharper the trend above the pattern, the more effective.
The wider the 1st bar and additionally its immediate predecessors in relation to previous bars, so much the better. This is certainly evidence that the strong root momentum of the prevailing trend has got climaxed and additionally can dissipate.
The smaller the 2nd bar relative to the broader range of the 1st bar, the more dramatic the change inside the buyer/seller balance and subsequently the stronger the signal.
Volume on the inside bar must be noticeably lighter when compared to compared to the above bar because it indicates a more balanced situation.
Main Behavior
Some kind of Inside Bar indicates a weighing of sentiment between buyers and sellers soon after a sustained up or down move. In the Inside Bar’s second day, especially through a drop in volume, you are watching a drop off interesting in this instrument. The balancing usually causes a period of sideways price movement, however a reversal can be done.
Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.
Technical Analysis Training (60 Days – Comprehensive Course)
Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.
Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
The world will not end on December 21, 2012 or anytime soon. I think the Mayan calendar indicates the end of a very long-term cycle that has a gradual impact upon the world, just as other long-term cycles make significant but gradual changes. Increases and decreases in solar output (a long-term cycle) may create ice ages or droughts that slowly and gradually change the world.
I’m also not worried about the other “end of the world” that we continuously hear about – The Fiscal Cliff. That topic has been worked to death. But the important information is simple:
Politicians brought the United States into our current fiscal mess, with the help of The Federal Reserve and bankers.
We have entrusted politicians to solve the problem. Really? The same political elite who created the problems will solve them? And what is your current belief structure regarding the Easter Bunny and the Tooth Fairy?
We have way too much debt and far too much government spending. The supposed plan is to increase debt forever and without end (sounds like a prayer) and to marginally decrease the rate of increase in spending – and call it a spending cut. If I call a donkey a mosquito, is it really a mosquito, or just a renamed donkey? If I have a debt and spending problem and my plan is to continue spending excessively, should I expect my problem to persist or disappear? If I have a serious drinking problem, should I expect to cure it with vodka?
So, the world is not going to end on December 21 or January 1. More of the same will beget more of the same.
But what does worry me are the actions that we, the supposedly most intelligent species on the planet, have made over the past several hundred years. Actions have consequences. Consider these actions:
Creation of Fractional Reserve Banking: This allows bankers to create money “from thin air” and loan it to businesses, individuals, and governments and collect the interest on that created money. The result is that debt increases, additional interest must be paid, and the financial services portion of the economy increases at the expense of the manufacturing economy. The paper shufflers won, and the manufacturers of useful and valuable products lost.
Creation of Central Banks: Central banks, not the free market, currently control the money supply and interest rates, enable politicians to spend excessively and government to expand more rapidly than the productive economy. Consequently, the economy becomes overburdened with debt, interest payments, and government regulations. What could go wrong?
Corporate control over the government and regulatory process: If a business owns many politicians, it can purchase the legislation and regulation it desires. The US tax code is an estimated 70,000 pages of legislation and regulations, as purchased by wealthy and powerful special interests. Intelligent action or payoff action?
Demonetization of gold and the use of unbacked paper money: When paper money is not backed by gold (silver, oil, etc.), then the total quantity of money in circulation can increase almost without limit. Hence, the purchasing value of the money decreases and prices rise. Consumer price inflation is guaranteed.
Politicians, bureaucrats, and bankers control markets and make decisions that should be left to free markets. Another writer likened that process to handing a Stradivarius to a gorilla. Freer markets do a better job of managing the economy, money supply, interest rates, prices, and production. How do we know? Ask the survivors of the hyperinflations in the last century.
The world will not end on December 21, 2012 or anytime soon. I think the Mayan calendar indicates the end of a very long-term cycle that has a gradual impact upon the world, just as other long-term cycles make significant but gradual changes. Increases and decreases in solar output (a long-term cycle) may create ice ages or droughts that slowly and gradually change the world.
I’m also not worried about the other “end of the world” that we continuously hear about – The Fiscal Cliff. That topic has been worked to death. But the important information is simple:
Politicians brought the United States into our current fiscal mess, with the help of The Federal Reserve and bankers.
We have entrusted politicians to solve the problem. Really? The same political elite who created the problems will solve them? And what is your current belief structure regarding the Easter Bunny and the Tooth Fairy?
We have way too much debt and far too much government spending. The supposed plan is to increase debt forever and without end (sounds like a prayer) and to marginally decrease the rate of increase in spending – and call it a spending cut. If I call a donkey a mosquito, is it really a mosquito, or just a renamed donkey? If I have a debt and spending problem and my plan is to continue spending excessively, should I expect my problem to persist or disappear? If I have a serious drinking problem, should I expect to cure it with vodka?
So, the world is not going to end on December 21 or January 1. More of the same will beget more of the same.
But what does worry me are the actions that we, the supposedly most intelligent species on the planet, have made over the past several hundred years. Actions have consequences. Consider these actions:
Creation of Fractional Reserve Banking: This allows bankers to create money “from thin air” and loan it to businesses, individuals, and governments and collect the interest on that created money. The result is that debt increases, additional interest must be paid, and the financial services portion of the economy increases at the expense of the manufacturing economy. The paper shufflers won, and the manufacturers of useful and valuable products lost.
Creation of Central Banks: Central banks, not the free market, currently control the money supply and interest rates, enable politicians to spend excessively and government to expand more rapidly than the productive economy. Consequently, the economy becomes overburdened with debt, interest payments, and government regulations. What could go wrong?
Corporate control over the government and regulatory process: If a business owns many politicians, it can purchase the legislation and regulation it desires. The US tax code is an estimated 70,000 pages of legislation and regulations, as purchased by wealthy and powerful special interests. Intelligent action or payoff action?
Demonetization of gold and the use of unbacked paper money: When paper money is not backed by gold (silver, oil, etc.), then the total quantity of money in circulation can increase almost without limit. Hence, the purchasing value of the money decreases and prices rise. Consumer price inflation is guaranteed.
Politicians, bureaucrats, and bankers control markets and make decisions that should be left to free markets. Another writer likened that process to handing a Stradivarius to a gorilla. Freer markets do a better job of managing the economy, money supply, interest rates, prices, and production. How do we know? Ask the survivors of the hyperinflations in the last century.
This is the 12th Day course in a series of 60-Days called “Technical Analysis Training”
You will get daily one series of this Training after 8 o’clock night (Dinner Finished)
Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)
Exhaustion Bar Chart Pattern (Bullish)
Effect of Exhaustion Bar
One Exhaustion Bar (Bullish) indicates a possible reversal of the current downtrend to a new uptrend. This pattern is definitely an sign of the economic instrument’s SHORT-TERM outlook. One and also two-bar patterns echo changes in investor psychology that have a very short-term impact on top of future prices – typically less than ten bars. Often the immediate influence is trend exhaustion followed by reversal. For investors looking for evident entry and leave points, these patterns provide well. They are really normally not appropriate because signals for long-term investors unless viewed as month-to-month bars.
Story
Exhaustion Bars can develop following a rapid upwards or down move. They happen to be a form of key reversal, however alter sufficiently sufficient to warrant their own classification.
Trading Factors Exhaustion Bars can be either Bullish or perhaps Bearish this depends on the direction of the inbound trend. If the inbound price trend is up, then upon identification of a Exhaustion Bar, taking a brief positioning or perhaps selling a long position is advised. Conversely, if the inbound price trend is down because in this case, then on recognition of a Exhaustion Bar, taking a long position or finalizing a short position is advised.
Problem of the particular pattern is denoted by a price move in the completely wrong direction beyond the extreme point of the Exhaustion Bar.
The amount that the price bars and volume features match this excellent summary probably will feature a bearing regarding the power of the post pattern price motion. Good trading training dictates that these signals ought not be applied in isolation: fundamental data, sector and also market evidences along with other technical like support/resistance and momentum studies needs to be utilized to support your trading choices.
Factors that Supports
The price opens with a large space in the movement of the then-prevailing trend.
The bar is extremely in width relative to the past bars.
The opening price nurtures inside the lower one half of the bar in a downtrend and also in the top half in a good uptrend.
The closing price must be both above the opening price and in the most notable 1 / 2 of the bar in a downtrend and additionally in the lower one half and also below the opening in the uptrend.
The bar is completed having a space to the left still in place.
Overall look for heavy volume to suggest short-term inbound trend orgasm.
Main Behavior
The existence of some kind of Exhaustion Bar normally warns of a reversal of psychology. By having a large opening space, you are watching the results of extreme sentiment, but like the in width trading range consumes up a big aspect of the opening space, plus the bar finishes with the gap virtually closed, you possess a strong indication of a sentiment reversal from bearish to bullish.
Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.
Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.
Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
