- U.S Markets closed higher yesterday.
- Global cues have finally turned Positive in short run.
- SGX nifty is up 60-70 points.
- Amazon declared results after Market hours.
- Due to Poor Guidance , the stock fell 8-10% after results in pre Market.
- Apple in spite of beating street expectations is down 3% due to cautious guidance for the next quarter.
- Asian markets are higher.
- Yesterday it was a surprising and a fantastic expiry for Bulls
- I had pointed out it wasn't the time to go short and focus on building longs.
- Market has obliged.
- Now I sense the momentum and upside could continue further.
- Both FII's & DII's were net buyers yesterday.
- Remember this is an year of Mean reversion and not a trending year.
- So when markets rally a lot that's when it's the time to short near all time highs.
- When markets crashes and bleeds look for longs.
- This is a reversing Market with huge Volatility.
- Contra trades would only succeed in such Market.
- After yesterday's rally we have turned into buy on dip mode.
- Most importantly , US VIX has crashed 10% yesterday.
- Expecting India VIX to go down by 4-6% today.
- IT has been underperforming from quite some time , this is the time to accumulate IT stocks and HDFc twins.
- These are quality themes in the long run
- Nifty might Trade between 17200 to 17400 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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