- U.S Markets closed lower on Wednesday.
- Thursday our Markets were closed.
- Yesterday, U.S Markets were flat.
- Asian Markets are all down.
- SGX Nifty is down by 200 Points and Trading near 16350.
- Reason for this is Majorly due to Afghanistan issue.
- Afghanistan has closed down its borders and has restricted movement of goods.
- Import and Export have now been stopped by the entry of Taliban.
- This news had come around on Wednesday and was confirmed by the Authorities later during the day.
- Indian Exports and Imports from Afghanistan is more than 1200 Million $ per year.
- This Blockage and restriction will hamper India's Business in future.
- U.S Fed also indicating taper tantrum to take place much sooner than expected.
- All these news over the Holiday has led to such fall.
- Now the Million Dollar Question is what Next from here?
- The trend now has surely become Negative.
- Market wont fall in a straight line but will witness bounce in between.
- These bounce should be used as an Opportunity to exit long positions by the Traders.
- Once this sell off stops , Market makes a low and starts to recover. We would again be in a Bullish Zone.
- Nifty might Trade between 16240 to 16480 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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