- U.S Markets closed 600 points higher yesterday.
- Dow futures and Asian markets are mixed now.
- SGX Nifty is trading at 17040 now.
- Markets has been making huge swings now.
- Just imagine , Friday's high was 17500 for Nifty and yesterday low was 16900.
- That's a 600 Point fall in 2 trading sessions.
- This selling is not on the back of any negative news nor on the back of negative global cues.
- Many are contemplating that this fall is due to Omicron Variant scare.
- I don't think so.
- Omicron Variant as many agencies pointed out is less deadly than Delta Variant.
- The biggest problem now for the Market is FII selling.
- FII's have now sold for 85000 crores in last 1 Month.
- Yesterday I expected a selling of 5000 crores but it has come at 3400 crores only.
- One shocking point is that only 1 stock of Nifty 50 closed higher yesterday.
- Rest all 49 stocks closed in Red.
- Until this FII selling goes on this is a sell on rally Market.
- Rallies and pull backs will come.
- Those are opportunities to sell into.
- Yesterday was a one day trending Market towards the downside.
- Nifty might Trade between 16800 to 17100 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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