- U.S Markets closed lower Yesterday.
- Most importantly , S&P 500 VIX closed 25% higher.
- This is a disturbing sign of option writers.
- When VIX goes higher put options go higher but CE do not fall proportionally.
- It looks like a short term Correction has begun in U.S Market.
- Asian markets and Dow futures are slightly higher now.
- SGX Nifty is down 50 points near 17900.
- Today we have weekly expiry.
- Next expiry we have only 4 trading sessions.
- Market has reversed from 18350 and now has become a sell on rise Market.
- Selling is so severe in first half as soon as we open.
- Both FII's & DII's are net sellers since last 2 days.
- Looks like retail has to be bear the pain.
- Bajaj Finance after declaring fantastic results scaled all time high yesterday.
- As soon as ATH were hit selling began.
- It fell almost 10% from highs yesterday.
- Hoping some stability today due to expiry etc.
- Yesterday's low of 17880 should be crutial support today.
- 18000 should act as an immediate resistance.
- Nifty might Trade between 17850 to 18050 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
Comments