- U.S Markets closed higher yesterday.
- For the first time after many days we had a positive closing yesterday.
- Dow futures right now are slightly higher.
- Asian markets are mixed.
- SGX Nifty is up 10-20 points.
- Yesterday was again a disappointing day for the Bulls
- Nifty again closed at the lowest point of the day dragged by HDFC twins.
- These both stocks have been making markets highly volatile.
- FII's were selling from a couple of days but their selling amount was not that large.
- Yesterday we had a 5000 crore number from FII.
- This was evident from the price action we had witnessed yesterday.
- From the day Honourable FM gave a statement indirectly saying FII's are not thay relevant & praised retailers.
- These FII's have started to show true colour.
- They have been selling on a daily basis from that day.
- Most important event today is the RBI policy.
- I feel markets have factored in negatives in the last 3 days fall.
- Today I expect RBI to maintain status quo.
- So we might have some rally today.
- Also 17600 is a strong support.
- I will turn cautious only if Nifty closed below this level.
- Nifty might Trade between 17580 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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