JUL series Day-11 BankNifty=10594 (-7)
We are on DAY-11 in this series, so we change our boundaries of PUT & CALL
windows to (30~300) instead of (40~400).
In JUL series 7 UP and 4 DOWN days as follows.
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The Expected Zone has moved from (10500~10800) to (
10400~10800).
Today intersection is in YELLOW colour whereas yesterday's in BLUE.
Reverse Repo Rate
This is the exact opposite of repo rate.
The rate at which RBI borrows money from the banks (or banks lend money to the RBI)
is termed the reverse repo rate. The RBI uses this tool when it feels there is too much
money floating in the banking system.If the reverse repo rate is increased, it means the
RBI will borrow money from the bank and offer them a lucrative rate of interest. As a
result, banks would prefer to keep their money with the RBI (which is absolutely risk free)
instead of lending it out (this option comes with a certain amount of risk) Consequently,
banks would have lesser funds to lend to their customers. This helps stem the flow of
excess money into the economy .
Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks,
while repo signifies the rate at which liquidity is injected.