- U.S Markets closed higher yesterday.
- S&P 500 VIX crashed 10% again.
- Last 3 days , everyday U.S Market is closing positive and VIX is crashing 10% on daily basis.
- VIX crashing indicates stability in the Market.
- It indicates that from here on , Volatility will reduce.
- This reduces option premiums on both calls and puts.
- SGX Nifty is again indicating 150 point gap up today.
- Yesterday's Budget was a Non -Event for the Markets.
- Market went up due to Global cues.
- In between there was a huge panic selling.
- Which gave an excellent buying opportunity to go long.
- Budget didn't have anything new nor did it have anything bad for Stock Market.
- Because it was a Non event option premiums have crashed on both the sides.
- Yesterday all the option buyers have lost significantly.
- Option sellers have made returns of their life.
- From here on , I expect India VIX to crash further below 18 in coming weeks.
- Market is Bullish and every dip is a buying opportunity.
- Main event is out and now we will follow the Global cues
- Nifty might Trade between 17500 to 17800 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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