- U.S Markets closed lower on Friday.
- Asian Markets were also lower.
- Right now Dow futures and Asian markets are down.
- SGX Nifty is down 100 points indicating opening around 16900.
- If one Remembers , last time we closed near 16900.
- The next day we had a huge gap up and a big rally from there.
- Today we are likely to open near 16900.
- 16800 is a short term low on Nifty.
- We had made a panic bottom around these levels previously.
- The Momentum is quite strong towards the downside.
- Many Index heavy weights are below it's 200 DMA.
- Bank Nifty already below it's 200 DMA.
- Trading below 200 DMA indicates a short term bear Market.
- Everything isn't worse.
- Today's first hour is crutial.
- If we sustain today's low and start to recover during the day then we might have double bottom at 16800.
- Which is a Possibility.
- Purely from risk reward type it's advisable to exit short Positions at open.
- Buy trade with a stoploss of 16800 offers a good risk reward
- Nifty might Trade between 16850 to 17150 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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