- U.S Markets were down 400 Points at one point of time.
- But it recovered half of it gains Intraday.
- Right now U.S Futures are lower.
- Asian Markets are also lower.
- SGX Nifty is down 100 points.
- This is bacause Fed has indicated to increase the interest rates.
- Interest rate hike is negative for Equity Market as money shifts from Equity Market to the Bond / Debt Market.
- Today we have weekly expiry and considering expiry this gap is huge.
- Yesterday also we fell and today's dip is also a significant correction already.
- This dip is a buying Opportunity and we might recover Intraday.
- 2nd half may turn out to be Volatile due to Expiry related issues etc.
- Yesterday I said I'm Expecting profit booking in near term.
- Exactly this has happened in next 2 days.
- Such Corrections are good for the long term growth of Bull Markets and offer buying Opportunity.
- 15600 is a strong support for today's Expiry.
- Bank Nifty has good support around 34800.
- These levels should hold on to in the first half.
- Second half based on Market Momentum positioning needs to be done.
- Nifty might Trade between 15600 to 15780 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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