- U.S Markets closed lower yesterday.
- Right now Dow futures and Asian markets are mixed.
- SGX Nifty is at 17300.
- Ahead of FOMC meeting Market is under pressure.
- Markets can handle good news , bad news but cannot handle uncertainty.
- Yesterday Nifty fell from high of 17630 to 17350.
- This is a big fall Intraday.
- FII's are the reason behind the same.
- Yesterday FII's have sold for more than 2700 crores.
- Nifty closed below it's important support of 17400.
- Now next support is at 17200-17250.
- 17600 CE has the highest open interest in weekly options.
- Markets would continue to remain volatile until clarity emerges.
- Yesterday the Broader Market was doing well.
- Advance- Decline ratio was favourable and Midcaps were slightly lower
- Only the Index heavyweights were under pressure.
- It was a concentrated selling by FII's in index heavyweights.
- Nifty might Trade between 17200 to 17500 today.
- One can look to buy this gap down with a stoploss of 17200.
- 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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