- US markets were closed yesterday.
- Asian Markets are also Trading higher Currently.
- SGX Nifty as on Yesterday closing was near 14300.
- Now it's showing a 100 Point gap up closer to 14390.
- Our Markets from last few days have been highly Volatile.
- India VIX had gone up above 25.
- Option premiums are very high.
- Ex Fed Chair Janet Yellen, who is going to be the future Treasury Secretary, called for aggressive Stimulus.
- That statement has made U.S and European futures rise.
- Which also made SGX Nifty to rise.
- All Largecap companies have declared very good Results.
- Pandemic was a speed breaker in the business but Largecaps have come out quite well.
- Infosys , TCS & HDFC Bank have declared very good Results.
- Reliance Industries , another Largecap has announced that it's going to declare results this Friday.
- Expecting another Blockbuster set of numbers from Reliance.
- Bull Markets often witness such quick Corrections when nobody expects.
- Due to these reasons Bull Markets become quite difficult to trade into.
- Corrections like these take in more shorts into the system which in turn help markets to go higher in future.
- Primary trend is Bullish and we are in a Bull Market.
- Nifty might Trade between 14260 to 14480 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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