- U.S Markets were closed Yesterday
- Right now Dow futures are Lower.
- Asian markets are mostly lower.
- SGX Nifty is near 17000.
- Suggesting a big gap down start for the day.
- This is due to the ongoing uncertainty around Russia - Ukraine war.
- Markets can handle good news , markets can handle bad news , but Markets cannot handle uncertainty.
- In Uncertain times , the worst gets discounted in the Markets.
- Later when the uncertainty is out Market rallies once again.
- Another disturbing thing is the India VIX going up almost everyday from last 3 days.
- Without any corresponding bad news india VIX going higher is a worrying sign.
- Yesterday VIX closed at 23.
- Today we might close near 24 as we are already expecting huge gap down open.
- 17000-17050 is the first support area for the day.
- Once this gets taken out the support emerges at 16850 -16800 area.
- 17500 has the highest open interest among calls.
- One can try a long trade near 17000-17050 with a stoploss near 16950.
- This a very good risk reward trade.
- Nifty might Trade between 16980 to 17300 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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