- US markets closed Flat Yesterday.
- Asian Markets are mostly in Green.
- SGX Nifty is up 80 Points near 11450.
- Yesterday our Markets Witnessed big selling pressure.
- Indo - China border news and also SEBI new Margin frameworks were the root cause for the same.
- India VIX was up 22% Yesterday.
- Put options prices rose to 10 X Intraday.
- This is a one off day and usually doesn't happen many times.
- Expecting Markets to be very Volatile today as well.
- Today also in the first half bears will try to sell every rally.
- If you get follow through on the short side you should go short.
- If there is no follow through and Markets cross the day high then we can withess short covering.
- So one should be prepared to trade both sides today.
- GDP data was also very bad and not as per Expectations.
- The Million dollar Question is?
- Has the Trend changed or is it just a Single off day?
- According to me it's a Single off day.
- In Bull Markets sharp corrections like Yesterday present buying Opportunity.
- Bears stay happy only for a day but Bulls take over again.
- So use these hard sell offs to build long Positions.
- Nifty Might Trade between 11340 to 11500 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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