RBI’s deregulation drive on saving interest rates has created a competitive environment across banks in an effort to retain and capture a loyal customer base. The second quarter of the monetary policy review instructed banks to implement deregulation of savings bank rates with immediate effect, allowing banks to set their own interest rates.

The rate of interest in savings bank account was 4% per annum as mandated by the government in May 2011. However with the recent change banks are now allowed to fix their interest rates for saving account customers.

Banks now use this as a competing factor and weave it into their merits to enhance their customer base.

The happy news for savings account holders is maximum benefits for their money irrespective of the time period. Before deregulation there was hardly any competition in this segment, and all banks offered the same rate of interest. So, there were no second thoughts for customers about shifting their savings account from one

Rather going into more details about its construction first we will understand how oscillators are useful to support our analysis of price reading for the short term and long term.  Now a days these oscillators are readily available with the software of technical analysis.

MACD: Developed by Gerald Appel in the late seventies, the Moving Average Convergence-Divergence (MACD) indicator is one of the simplest and most effective momentum indicators available. The MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the best of both worlds: trend following and momentum.

The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centreline crossovers and divergences to generate signals. Because the MACD is unbounded, it is not particularly useful for identifying

Everyone uses technical analysis to identify “when to buy/sell” along with fundamentals which normally supports to the theory of “why to buy/sell”. But I feel that in the market, buying or selling always starts on the basis of futuristic fundamentals, which is difficult to guess based on current fundamentals.  Of course, with the help of macroeconomics we can come on a broader conclusion but then there always remains the scope for “if and but” that many a time makes it difficult for analysts to take a concrete decision, whether to buy or sell  in an euphoric scenario like the rise of 2008 and the recent fall of 2011. 

The constant macroeconomic change affects major corporates of the country. In our opinion they are at the top of the hierarchy of the market participants.  Based on their comfort or uneasiness they start reacting to it. Then the action of corporates’ spreads into other layers of participants like insiders, operators, mutual funds/ Institutions in a step by step mode. By