- U.S Markets closed 450 points lower yesterday.
- Surprisingly , Asian markets are outperforming Global Markets.
- Right now Dow futures and Asian markets are higher.
- Yesterday U.S Markets were trading higher for most part.
- News broke out regarding an Omicron case found in California.
- This caused huge panic selling.
- U.S VIX crossed 30 yesterday.
- VIX above 30 is a red flag and one has to be careful.
- Yesterday for the first time after many sessions we had a stable closing.
- Bank Nifty closed strong and showed some momentum.
- Nifty at one point witnessed selling but was bought into from lows.
- Smart money has been shifting from Global Markets to Asian markets.
- Asian Countries haven't discovered an Omicron case yet.
- I expect Markets to consolidate for some time now.
- 17000 to 17300 could be the range.
- Unless any fresh news or triggers are emerged this range could play out for 2-3 trading sessions.
- Bank Nifty looks strong and 36000 is a good support.
- Put option premiums are quite high whereas Call options are not that attactive.
- FII's have sold about 2700 crores yesterday but DII's have bought for 3400 crores.
- Nifty might Trade between 17050 to 17250 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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