- U.S Markets closed lower yesterday.
- Right now U.S Markets and Asian markets are lower.
- SGX Nifty is trading near 18220.
- In spite of big fall in Global Markets , SGX Nifty is still down just by few points.
- Yesterday was a very rangebound expiry.
- We had a short covering in the end but it was mostly rangebound only.
- IT index was flat throughout.
- Infy had come up great set of numbers and everybody expected a rise in prices.
- But a small gap up also got sold into.
- Usually , on the expiry days moves get restricted because of option writers.
- Real action begins on the day after expiry.
- Today's action is important to watch out for.
- 18300 straddle added huge open interest yesterday.
- 18000 PE also added good open interest in monthly as well as weekly.
- Yesterday I gave a swing trading set up on Nifty.
- Buy at 18200 with stop of 18k and targets of 18400 and 18600 (1:2 risk reward).
- This set up still holds well.
- Nifty might Trade between 18140 to 18360 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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