- US markets closed more than a percent lower Yesterday.
- Asian Markets are Flat.
- SGX Nifty is Trading Near Yesterday closing near 11850.
- The reason why SGX Nifty is flat despite a big fall in U.S Markets is Because Dow Futures are up by half a percent now.
- U.S Markets dont like Uncertainty , any market doesn't like Uncertainty.
- Due to Stimulus talks being halted theres a lot of Uncertainty going around.
- This is causing profit booking in Emerging Markets.
- HDFC Bank came out with its results Yesterday.
- But the stock reacted mutedly on its Numbers.
- All other private banks were up 4-5% Yesterday.
- HDFC Bank was up about just a percent.
- So Expecting Markets to Consolidate now.
- Next 3 days we may expect Consolidation between 11700 to 12000.
- If any of these levels gets taken out then there will be a big rally towards that side.
- Until then one should play for this range.
- The Trend is intact and strong.
- There May be hiccups in between but the Trend will continue to follow.
- Another thing which I've been observing from many days is VIX is slowly inching higher.
- VIX isnt falling and inching higher with each passing day.
- This shows that Volatility is going to rise in coming weeks and there might be big swings.
- Take those to your Advantage.
- Nifty might Trade between 11740-11920.
- 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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