Higher Borrowing – RBI Move Awaited

May 12, 2020

The government on Friday evening steeply revised upwards its 2020-21 borrowing programme by 53.85% to Rs 12 lakh crore. It was earlier estimated to be Rs 7.8 lakh crore, indicating that the Centre is giving shape to an imminent and sizeable fiscal package to arrest the COVID-19 related slowdown.

The above revision in borrowings has been necessitated on account of the COVID-19 pandemic.

Here is our take on the revised borrowings and what RBI can do next…

Knowledge Series: The RSI Technical Indicator

May 11, 2020

Relative Strength Index or RSI is a price momentum oscillator used widely in Technical Analysis of stock prices. This series strives to explain practical application of RSI without going into nuance of mathematics in constructing RSI.

RSI should be applied in conjunction with the current state of stock as RSI behaves differently in trending stock and in range bound stock. Thus RSI behaviour can provide insight into Trending/Trendless state of Stocks and Indices.

Please read the complete report to understand the importance of this indicator with stock examples.

Impact of SEBI Circular – 30th April

May 1, 2020

SEBI released a circular dated 30th April 2020 defining the relaxations on compliance requirements for Mutual Funds. Official circular can be found here.

All these changes have an effect on the markets. Here is our impact analysis of the effects on the market when these regulations are implemented.