Skip to main content

Pre- Market Analysis (5th May 2022)


  1. U.S Markets closed higher yesterday.
  2. Asian markets are higher.
  3. SGX nifty is up 150 points.
  4. Yesterday was a very tricky and unexpected session.
  5. As soon as Market opened there was a continuous selling.
  6. Market was falling left , right and center without taking any support.
  7. I was wondering why is the Market going against the global cues
  8. Then we got the news about RBI Governer press conference.
  9. So some informed people already knew about this rate hike.
  10. Hence there was a sudden selling in the markets.
  11. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points.
  12. Repo rate is the rate at which banks borrow money from RBI.
  13. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier.
  14. This slows down the growth and liquidity in the Market temporarily.
  15. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI.
  16. RBI uses that money without having to pay any interest on it.
  17. Increasing CRR means RBI is trying to curb liquidity in the Market.
  18. Banks keeping more money with RBI means lesser loans in the economy leading to lot less liquidity.
  19. Sudden decision of rate hike has spooked the markets.
  20. When RBI knows it's negative for market and economy in the short run , why go for it then?
  21. The reason is inflation.
  22. When people have more spending capacity the seller controls the price as there are many buyers for one seller 
  23. Fed had prepared markets well in advance for the rate hike.
  24. That's the reason even after the rate hike Dow rallied 1000 points.
  25. It was totally a bad decision by RBI yesterday to give a shock ahead of LIC IPO.
  26. Nifty might Trade between 16600 to 16900 today.
  27. stockmarketadvisory.in

Comments

Popular posts from this blog

Pre - Market Analysis (30th Jan 2022)

1. U.S Markets closed higher on Friday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is up 30-50 Points. 5. There's no point discussing Global markets today. 6. As we are dealing with our own local issues as of now. 7. The talk of the town is Adani Group. 8. Every stock Market participant during last 2 days have not spent as much time with their wife /gf /husband /bf as they have spent on researching Adani stocks. 9. They shouldn't have wasted so much time in research and should've spent their time with loved ones. 10. As Ultimately my Pre Market report would clear all. 11. Now , the Adani stock price has gone below the FPO price. 12. FPO price is in the range of 3100-3200 and stock price is around 2800  13. Who will subscribe to FPO when they can buy shares much cheaper from the Market? 14. Also over the weekend Adani has come up with a 450 page report addressing one by one the allegations made by Hindenberg.  15. I haven't

Pre - Market Analysis (2nd Feb 2022)

1 U.S Markets closed lower Yesterday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is down 150 Points. 5. Yesterday was the Fed event in U.S 6. It was expected that they would raise rates by 25 basis points. 7. The same happened yesterday and in spite of that Markets crashed yesterday.  8. Yesterday was a highly Volatile day. 9. Markets were all over the place yesterday.  10. Before the budget , markets were higher. 11. During the budget , markets were flat. 12. After 1 pm markets were at the peak of Volatility.  13. Bank Nifty was down 1000 points by 2.45 pm. 14. In next 30 minutes it recovered all of its losses. 15. The budget was neither good nor bad. 16. The income tax slabs have been revised but also the insurance benefit has gone. 17. All the Insurance companies crashed yesterday.  18. This is a structural change coming out of budget now. 19. Adani stocks crashed yesterday.  20. So clearly there was valuation over hang which is gettin

Nifty hits 17k (15th March 2023)

1. U.S Markets closed higher yesterday.  2. Right now , U.S Futures are lower. 3. SGX Nifty is up 80-100 points. 4. Asian markets are mixed. 5. There has been 4 days of relentless selling in our Markets  6. The reason doesn't seem to be Banking collapse in United States. 7. U.S Markets have settled after a knee- jerk reaction. 8. Our Markets haven't settled yet. 9. This isn't a selling like the previous ones. 10. Previously FII's used to target few nifty stocks  11. Used to sell them and create panic. 12. This selling is now an all around selling. 13. Broader Markets have been bleeding extensively. 14. There is pain all around. 15. Now 17300 becomes a very important resistance. 16. Nifty might retest 17300 and then break 17k. 17. Markets won't collapse in a hiff.  18. There would be intermittent rallies in between to take weak shorts out. 19. FII's have now been selling aggressively.  20. Nifty might trade between 17000 to 17300 today. 21. stockmarke