HI Friends,
As mentioned in this link
While rate was cut by RBI, i expected market to rise but conversely market was down because of rate cut. Can someone help me understand the reason behind this.
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Its a classic example of Dow Theory that ‘Price discounts everything’. The rise in stock and index prices between budget and rate cut already discounted the possibility of rate cut. Post rate cut, there was no more indication of radical economic change in the short term. Hence heavy profit booking took place which brought the markets down. This affirmed the reliability of technical analysis as compared to news based trading.
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Prem4678,
Actually I don't know about fundamental region as I am just a new trader. But a Elliott Wave Theory analyst alerted just after rate cut at morning on 04 March 2015 that Nifty can fall sharply below 8470. And Nifty fell 220 points from high on same day and also broke below 8470 later.
He has explained the reason on charts with some counts and calculations. I am not an experts in Technical Analysis but this guy has real skills to read market moves. You can check this link to his analysis report he posted at morning just after RBI rate cut.
http://sweeglu.com/nifty-elliott-wave-analysis-after-rbi-rate-cut-on-04-march/
GOOD understanding 