- U.S Markets closed higher yesterday.
- S&P 500 hit a fresh all time high.
- SGX Nifty is trading at 17200.
- Both the U.S Market futures and Asian markets are slightly lower now.
- Yesterday it was a highly volatile day.
- Nifty fell nearly to 16800 in first hour.
- Then shot up nearly 250 points from lows to close at 17100.
- Today another 100 point gap up is on cards.
- So the Market is making life highly difficult for positional traders.
- Intraday traders finding it a bit easier to handle the same.
- FII's have sold just over 1000 crores yesterday.
- Because of year end there are very low volumes of indices and stocks
- Any small sell / buy order is creating large moves.
- RBL Bank panic caused the first hour selling yesterday.
- But immediately the Market saw some stability at lower levels.
- This huge gap up today I don't think could be sustained.
- 17150 , 17200 is an immediate resistance so this should negate the rally.
- If we sustain over these levels for 30-45 mins then we could continue the momentum on upside.
- Nifty might Trade between 16900-17250 today.
- stockmarketsdvisory.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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