- U.S Markets closed lower Yesterday.
- This is due to Tensions floating in Afghanistan.
- Asian Markets were negative yesterday during the Trading hours.
- Now , all of them have recovered.
- SGX Nifty is Trading around 16650.
- It is safe to say that Indian Markets are outperforming the Global Markets.
- August series continues to be dominated by the Bulls.
- Yesterday evening , a news emerged that RBI has allowed HDFC Bank to issue Credit Cards.
- HDFC Bank has been underperforming from quite a long time due to RBI restriction.
- This temporary lift of Ban might trigger some Positivity in the Stock.
- Bank Nifty might outperform today as HDFC Bank has the highest weight in Bank Nifty.
- Lot of calls have been written at 16600 and 36k for Bank Nifty.
- Yesterday's last 30 mins rally in the Markets have caused a trouble for these people.
- 16500 straddle also has the highest open interest.
- So if Market sustains the Positivity we might see unwinding of these Call writers which will further take the Market higher.
- Premiums are already too low so one can shift to monthly expiry contracts.
- IT sector has outperformed yesterday and it should continue the momentum.
- Bank Nifty is the key today , if Bank Nifty sustains above 36100 then this will carry Nifty single handedly.
- Nifty might Trade between 16520 to 16700 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