- U.S Markets were lower Yesterday.
- Asian Markets were down Yesterday.
- Right now Dow Futures and Asian Markets are higher.
- SGX Nifty is trading near 17650 now.
- Yesterday it was a highly volatile trading day.
- Nifty opened above 17900 was down 300 Points to 17600 and recovered 150 Points during the end.
- India VIX was higher Yesterday as well.
- Monthly expiry is always volatile.
- Futures , Options Contracts all expire at once and that causes indicisivess.
- The reason was such large fall at Intraday was due to Bond Yield rising.
- 10 Year bond yield was up by ₹1.5 yesterday.
- When Bond Yields rise people shift money from Equity to Debt Instruments.
- Plus crude oil also crossed 80$ / Barrell.
- Bond Yield issue was there even in the month of March 2021 and Markets reacted violently then.
- I don't expect the reaction to be much fierce for now.
- Markets won't react twice for the same stuff.
- Expecting Nifty to expire between 17600 to 17900.
- This should be the trading range for today and tomorrow.
- Nifty might Trade between 17600 to 17900 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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