- US markets were closed yesterday.
- So nothing Major Macro Cues.
- Dow futures are Trading in Green now.
- Our Markets , in spite of many issues are consolidating.
- Consolidation is not a bad thing at this point of time.
- Infact it's considered Positive for the Bulls as of now.
- Yesterday Idea - Vodafone event was a non event.
- There was nothing Major except a name change.
- This is nothing to be considered as Strategic alliance.
- Bank Nifty is looking very weak.
- Any small Pullback in Bank Nifty is also getting sold into very Aggressively.
- FII's & DII's have also been selling very Aggressively.
- From last week their selling has been accentuated.
- The view as of now is Negative - Neutral.
- Traders should look to sell into any Pullbacks.
- Buying on dips should not work for now.
- Markets can remain Irrational for some time now but sooner or later they will come in line with economy.
- Nifty might Trade between 11200-11380 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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