- U.S Markets closed lower yesterday.
- Bank of England hiked the interest rate due to Pandemic.
- U.S reported highest number of COVID cases yesterday.
- Even though Accenture reported stunning results yesterday , Nasdaq was down 2%.
- Yesterday expiry showed the poor performance of our Markets.
- There was a huge gap up but it was sold into heavily.
- Nifty couldn't even hold onto the gains for an hour
- SGX Nifty right now is at 17290.
- Today the most important level to watch out is yesterday low and high.
- Yesterday low was about 17190 and high was 17370 thereabouts.
- Within these levels Nifty would be in a rangebound territory.
- Once if any of these levels gets taken out and it sustains then we can expect a trending move.
- India VIx was down 8% yesterday and option premiums are too low.
- Specially the Put option premiums are too low.
- No point in selling put options at such low premiums when FII's are all out to sell Indian markets.
- Yesterday last 30 minutes buying helped Nifty to recover 80+ points else we would've closed negative.
- Nifty might Trade between 17100 to 17400 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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