- U.S Markets were shut yesterday.
- Right now Dow Futures are lower.
- Asian markets are slightly lower.
- SGX nifty is down 50 points close to 16600.
- We have rallied from 15900 to 16700 yesterday.
- All in a matter of 3 trading sessions.
- 15900 was the expiry low and 16700 was Yesterday's high.
- This rally is majorly due to short covering across the Globe.
- Yesterday India VIX closed below 20.
- Options IV's are very low for this month.
- Indicates that this is going to be a sideways / range bound month with less big moves.
- Yesterday for the first time after almost 1.5 months FII's have turned buyers.
- Yesterday they have bought for 500+ crores.
- This is indeed a good news for the Bulls but we have to see whether it is a continued buying or just a one off day.
- Anyways as long as Global markets are strong we do not have to worry about FII selling.
- 16400 is a strong support now for nifty as we decisively closed above the same yesterday.
- Next resistance is at 16800.
- This is the range you gotta work with for the current time being.
- Bank Nifty underperformed Nifty yesterday.
- This is natural as Bank Nifty outperformed in May month.
- Now it is a prone to profit taking.
- Nifty is likely to outperform bank Nifty as IT index starts to fire.
- Nifty might Trade between 16500 to 16720 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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