- U.S Markets closed lower Yesterday.
- U.S Markets are down for 5 trading sessions out of last 6 sessions.
- Whereas Indian Markets are up for straight 5 sessions.
- Right now Dow futures and Asian markets are higher.
- SGX Nifty is flat near yesterday closing.
- Yesterday was a fantastic rally in our markets.
- It was a stable Market and a slow and steady rally.
- This was due to major contribution by HDFC group stocks.
- Both HDFC and HDFC Bank led yesterday's rally.
- Mid caps were underperforming throughout the day
- It was the large caps which kept Nifty in check.
- We have fed meeting on Thursday and that's why U.S markets are jittery.
- Because of higher Inflation , FED is expected to increase rates.
- This is leading to a fear in the markets.
- Yesterday india VIX kept inching higher.
- It was higher throughout the day.
- Put options were not falling proportionately whereas call options kept rising.
- Expecting markets to test 200 DMA today near 16950.
- Yesterday we did cross 20 DMA of 16850 and closed above this.
- If we cross 200 DMA then I would become bullish.
- Nifty might Trade between 16700 to 17000 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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