- U.S Markets closed mixed on Friday.
- Dow Jones closed slightly higher.
- S&P 500 was flat and Nasdaq is very weak.
- Right now , Dow futures are lower.
- SGX Nifty is down 100 points.
- So we are in for a gap down opening today.
- Friday was a quite interesting day.
- As expected , RBI policy was a status quo.
- Nifty broke Thursday low of 17640 and traded below for quite some time.
- And then for a short squeeze.
- All the shorts were trapped and we had a big rally.
- Most importantly , India VIX was down 7% on Friday.
- I expect markets to consolidate between 17600 to 18100 for a while.
- I do not see a reason to be excessively bearish now.
- Markets went from 17700 to 18100 because of hdfc twins.
- And then crashed to 17600 because of these both stocks.
- These both stocks have given up all of their gains and are back to Pre merger levels.
- There is very limited downside now for these stocks and expecting these stocks to bottom out soon
- 17500 to 17600 is a strong buy zone on Nifty.
- Also earnings season kicks off today.
- TCS is going to declare results most probably after Market hours .
- Time to accumulate longs with a stoploss of 17600 Intraday basis.
- Positional stoploss at 17500.
- Nifty might Trade between 17600 to 17900 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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