- U.S Markets closed lower yesterday.
- Right now U.S Futures are lower slightly.
- Asian Markets are also lower.
- SGX Nifty is down by 30-40 points.
- This is due to the outcome of Fed meeting which is expected to arrive at 11.30 today.
- Before any Event due to Uncertainty we might witness profit booking.
- Same is happening today.
- Yesterday our Markets crossed the resistance of 14800 and closed sharply higher.
- Bank Nifty also outperformed for the last couple of days.
- Coming to today we can expect it to be a Volatile session.
- Wednesday markets are very Volatile from past many Months.
- You may Remember what had happened last Wednesday.
- So one should be ready to deal with Such Volatility.
- I don't think Fed meeting outcome would have much impact on our Markets.
- Unless they increase interest rate drastically.
- But I feel it's time to stay a bit cautious on upside.
- This seems like too streched Market now and some profit booking may be evident.
- This is the best Market if you get dips.
- Larger the dips larger the rallies.
- On Monday we got big dip but we rallied 300 points from 15600.
- I would advice to lighten your Bullish Trading bets.
- Nifty might Trade between 15700 to 15900 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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