- U.S Markets closed a bit lower Yesterday.
- Right now U.S Futures and Nasdaq Future's are trading higher.
- SGX Nifty is Indicating a big gap up above 15100 today.
- Yesterday we witnessed a fantastic rally in both the Indices.
- Nifty and Bank Nifty both have Outperformed highly.
- Bank Nifty in particular was the star of the show Yesterday.
- Bank Nifty closed 1300 Points higher Yesterday.
- It was a big short covering in all the Banking stocks.
- The short covering was led by PSU Banks.
- FII's were also short in our Markets previously and they are still net short on our Markets.
- This short covering took the indices even higher Yesterday.
- Today if we sustain above 15100 for an hour this short covering will increase further.
- 15000 has been acting as a big resistance from quite some time now.
- Sustaining above this level with follow through indicates further strength in our Markets
- Shorting is not advisable as of now.
- India VIX for the first time closed below 20 Yesterday.
- Even now FII's are short on our Markets.
- So there's a high scope of Short covering still existing.
- At one Point of time it was trading near 19.6 down 4%.
- 34000 is a critical level for Bank Nifty and the recent high was about 34300 for Bank Nifty.
- Once both these levels are taken the rally will intensify.
- Bank Nifty might continue to outperform today.
- Nifty might Trade between 14980-15180 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
Comments