- US markets closed higher Yesterday.
- S&P 500 is just a percent away from it's all time highs.
- We are almost 1000 Points away from all time highs.
- Asian markets are mixed.
- SGX Nifty is totally flat.
- Yesterday, our markets were highly volatile.
- Wednesdays are typically very high volatile days.
- After a big Gap up Yesterday Markets Witnessed big selling pressure.
- After that it Traded flat for the whole day.
- As Expected Yesterday Markets Consolidated for almost the whole day.
- Reliance also Witnessed big profit booking after touching it's fresh all time highs.
- Markets will be closely tracking Lupin results today.
- But most important is RBI policy at 11.30 AM.
- Markets are speculating as to what is RBI trying to come up with today.
- Will RBI extend Moratorium? Will RBI cut interest rates? Etc etc.
- Talk of the Town is RBI Policy.
- Interest rates are already very low and it seems less probable to reduce them more .
- Moratorium if extended can break the back of the Banks.
- RBI has a history of Surprising everybody and coming up with Something unexpected.
- I will square off all my Positions before 10 AM today as events can create big Volatility.
- Specially on the days of Expiry
- Nifty might Trade between 11000 to 11300 as the Key event is ahead of us.
- Intraday Option writing should be avoided today
- stockmarketadvisory.in
U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is
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