- On Friday, US jobs data came much lower than expected.
- Inspite of this Negative news U.S Markets were higher on Friday.
- That's because Govt would bring in more Stimulus and not increase the interest rates in near future.
- SGX Nifty is Currently trading near 14990.
- Asian Market's have opened in flat zone as of now.
- In the past whenever we crossed 15k we witnessed selling pressure
- Selling was very severe.
- We have been trading in the range of 14200 to 15000.
- Now we might expand upto 15200 on Nifty.
- One should apply caution when Nifty is above 15k.
- Considering the Block deals etc FII's have turned net buyers in the Market.
- We are in a ranging Market so the best way to approach the same is to trade based on the range.
- Big trending moves are less likely to happen.
- Nifty is 3% away from record highs whereas Bank Nifty is 10% away from record highs.
- Bank Nifty might witness some catch up rally here.
- Metals are shining from last 2 Months.
- All the Metal Stocks have doubled and the rally will continue for some time now.
- Iron Ore Futures is up 10% in Pre open.
- This will keep the rally going.
- Right now we are following global Markets and Indian Market's as they are not as developed to U.S Economy always Underperforms in the long run.
- On the Contrary when U.S Markets fall we fall at much faster pace.
- Do not Pre -empt a breakout etc unless you get a clear signal of the same.
- Trade the range and use Mean Reversion view.
- Nifty might Trade between 14860 to 15060 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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