- U.S Markets closed slightly higher Yesterday.
- Dow Futures are now flat.
- SGX Nifty is almost flat.
- Asian Markets are mixed.
- Yesterday we witnessed a huge gap up on both the indices and there was a follow through of the rally during the day.
- All might have various theories as to why Market fell , why It rose etc.
- My Simple understanding we are in a ranging Market on Nifty.
- The range is 15550 to 15950.
- This is a tight range of 400 points.
- Nifty is trading within this range and giving wild moves.
- It's been 4 weeks for July series and we have been trading within this range.
- Usually Markets make a big move on the last week so we might be in for some surprises.
- I do not see reason to be Bearish for traders.
- Bank Nifty is the weak link for the Bulls.
- Yesterday as well , Bank Nifty rally fizzled out.
- We have 2 very important results lined up.
- Reliance Industries and ICICI Bank.
- Reliance Industries has the leading weightage in Nifty and ICICI Bank has the 2nd largest weightage in Bank Nifty.
- Both these results will determine the future course of events for Markets.
- Until then I expect Markets to be Rangebound.
- Yesterday I pointed out that India VIX should fall and the same has happened.
- India VIX crashed 10% yesterday and closed below 12.
- Nifty might Trade between 15780 to 15920 today.
- In such low premium environment it's better to do Ratio Spreads , Calendar Spreads , Bull & Bear Spreads and avoid selling naked options.
- Vega effect is highest in last week of expiry.
- 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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