- U.S Markets closed slightly higher Yesterday.
- Right now U.S Futures are trading higher.
- SGX Nifty is trading near 15750.
- Asian Markets are mostly Positive.
- Yesterday we opened higher and were consolidating in the first half.
- Second half witnessed good profit booking due to Bank Nifty Underperforming.
- Bank Nifty has huge open interest at 35000.
- This would be a stiff resistance for today.
- Option Premiums are too low already.
- This is because India VIX is Trading below 15.
- In Spite of such low Premiums option sellers are confident to sell options.
- Risk is if any sudden news or move comes then premiums can rise significantly in no time.
- Another point I wish to mention is Small Cap and Midcap stocks a major chunk is highly Overvalued.
- The IPO's which came before had unreasonable valuations but most of them have been corrected.
- Some correction is due still.
- When Stocks without Fundamentals start to go up that's when you start to worry.
- If you have invested anywhere in last 1 Year most probably you made money as most of the stocks have gone higher.
- Now Dynamics have changed.
- This will be a Stock pickers market from now.
- Those who can choose fundamentally and technically sound stocks only can make money.
- Nifty might Trade between 15680 to 15880 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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