- U.S Markets closed higher yesterday.
- Right now Dow futures are lower.
- Asian markets are mostly higher.
- SGX Nifty is near 16500.
- Suggesting a big gap up for the day.
- Well yesterday was a Bloodbath in all World markets.
- Russia started to attack Ukraine yesterday and there was a possibility of a war.
- Market feared this and we had a big gap down.
- All the expiry put writers got brutally trapped plus all the monthly F&O longs got trapped as well.
- They had to cut their positions at levels being offered and this let the Market breakdown further.
- Yesterday Nasdaq was down.3.5% when our Market was trading.
- From there we had a dramatic recovery of 7% and it closed 3% higher.
- This is because Biden has announced Sanctions against Russia.
- He has left Oil and Natural Gas in the sanctions.
- This led to a steep decline in commodity prices and triggered a large short covering.
- Yesterday india VIX crossed 30.
- It closed above 30 decisively.
- VIX crossing 30 indicates huge Volatility and it becomes very difficult to trade for short term.
- I feel if yesterday wouldn't have been expiry we wouldn't have fallen this much.
- Due to expiry related issues move accentuates on either side.
- Nifty might Trade between 16400 to 16800 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