- U.S Markets were closed yesterday.
- Some major developments have taken place overnight.
- There's a new variant of Corona virus which has been identified in Africa.
- Some cases have been found of this variant in U.S as well.
- So U.S has banned flights from Africa.
- SGX Nifty is indicating a 150 point gap down at open.
- But I do not think we are going to open this lower.
- India doesn't face any issues due to this Covid variant.
- Plus I feel Covid concerns may slow down the pace of tapering by Fed.
- This could be a positive for the Markets.
- December is a long month with 5 weekly expirys in it.
- 17000 PE has the highest open interest in December series on the downside.
- So this could act as a good support for whole of the December series.
- For Intraday , one should look to buy this gap down with a stoploss of yesterday low ie , 17350.
- 17250 is a good support on the lower side.
- Now the Market is consolidating between 17250 to 17600 with high Volatility.
- This range could go on for a while.
- Nifty might Trade between 17350 to 17550 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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