A Positive Move...

Government finally bit the bullet...

Hiked Diesel price by Rs 5 a Liter and limited subsidized LPG cylinder to 6 per family per year. Now this is very very long overdue step and one surely in positive direction. For, first, Diesel subsidy is hardly useful to poor people (apart from lower transportation costs) and it is mostly used by affluent middle class for their SUVs. Second, the poor people for whom the LPG subsidy is intended will usually never use more than 4 cylinders in a year. They have probably single stove and make simple food (hopefully) twice a day and for that 6 cylinders are usually more than sufficient. It was always the best way to  solve the wrongly directed LPG subsidy. I have to say, got a pleasant surprise with the news.

NIFTY today made a doji and Bulls and Bears were really fighting hard for an upper hand but given this development, I do not think that we will have a reversal tomorrow (with the rider that US Markets don't spoil the party).

US Markets as of this moment are in positive territory and if they close like that (or even stay flat) we should see positive opening tomorrow. We are not in any danger area as far as RSI or MACD are concerned and I am pretty sure that had it been otherwise... even then Markets would have cheered this move emphatically.

I can only hope that Mamata Di or someone similar do not start some political vote bank drama and push for rollback by blackmailing the Government. Lets hope GoI shows some spine this time.

As for my end, then I am stuck in 'Aamchi Mumbai' for some conference and usually having working dinners everyday. Will be back in Pune on Sunday and should be able to chill out a little then. Sorry for repeated  delay in tutorial post. Thanks for your comments, mails and wishes for 100th post. Happy Trading.

Addition:
I am modifying this post a little as just reading the news that Fed has decided to formally announce that they will continue with Quantitative Easing and this time it will be open ended. This is very very interesting. Fed has never committed itself to such a degree before. Will have to read between the lines and see what prompted this.

It says it will continue with policy action till it sees 'substantial' improvement in employment conditions. I am too tired to go through the Fed statement fully but can sense that it can actually start a short term rally afresh (as if we are not in it already). Very interesting times and I am ruing the fact that I am short of energy to grasp everything right now. Guess, will have to write about it during the weekend if I observe something unusual. Please blame Fed not me if tutorial post gets delayed again... I know you won't mind it though.