In a very volatile trading session yesterday, the Indian share markets closed the day in partial gains with sensex gaining 74 points and nifty gaining about 20 points to close at 4,332 levels. The RBIs governing body is to meet today to decide monetary policy. We may see some hike in key interest rates today so as to contain the inflation. If RBI raises the CRR by 50 basis points, then we might see some sharp corrections with the interest rate sensitive stocks.

Coming to the global markets; the US share markets had crashed in yesterdays  trading session when  Dow and Nasdaq lost 2.11% and 2% respectively among some concern in the financial sector of the economy. Reacting to this the Asian markets have already crashed in the morning trade with Nikkei-225 down by 2.15% and Hang Seng down by 2.42%.

So the Indian markets will also open a huge gap down today and we are sure to have a very choppy trading session. Added to that if we get to see some rate hikes by RBI, the fall may be even severe. So traders are advised to remain very cautious today and better to get involved in short selling. Anyways after a sharp decline there is always a good buying opportunity if the markets bottom out soon.

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