- U.S Markets closed higher yesterday.
- Right now Dow futures are flat.
- Asian Markets are higher.
- SGX Nifty is indicating a huge gap up of 150 points at 18220.
- This is quite a big gap up and also many call writers have been trapped at lower strikes.
- These call writers will face more problem in today's gap up.
- If we open near 18200 it's a good place to take profits off and sit aside for some time.
- We have lots of events today and Market bullishness indicates that insiders might know the outcome.
- These people start building positions before the actual event takes place.
- It's high chances that these events will be Market friendly.
- Inflation data in U.S expected to be 7.1% and I think U.S markets have already factored in the same.
- So even if we get this number markets would likely ho higher.
- IT Stocks are expected to post good results as Accenture has posted good results this Quarter.
- The only worrying problem is rising COVID cases.
- Market fell in panic when Omicron first took its presence in our counrty.
- Soon , Market has realised that the Hospitalisation and impact of Omicron is lesser compared to Delta Variant.
- Hence , we are moving higher.
- FII's are on a buying spree.
- Yesterday both the DII's and FII's were net buyers.
- 18000 should act as a good support for rest of the expiry both on weekly and monthly basis.
- Nifty might Trade between 18100 to 18300 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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