- U.S Markets closed mixed yesterday.
- Right now Dow futures are slightly lower.
- Asian markets are lower.
- SGX Nifty is trading at 18330.
- Indicating a 100 point gap up today as well.
- This could be due to good results declared by IT companies.
- Infy in particular has come out with spectacular results
- TCS and Wipro set of numbers also look appealing.
- Also today is weekly expiry and lot of call writing has taken place at higher levels from 18200 to 18400.
- So this gap up could cause option writers specially call writers in trouble.
- Yesterday the ViX was also down 3%.
- Option premiums are quite low now considering January month end expiry is quite far.
- Inflation data is also high in India near about 5.5%.
- Which is a worrying sign and could invite rate hikes by RBI in future.
- I feel we are in a pre budget rally and this could fire till 18600.
- From there we should re consider bullish stance.
- Any sort of dip towards 18200 is a buying opportunity for the day.
- Right now we have a good swing trading set up.
- Buy at 18200 with stoploss of 18k and targets of 18600 (1:2)
- Nifty might Trade between 18200 to 18400 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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