- U.S Markets closed mixed yesterday.
- Right now Dow futures slightly lower.
- SGX nifty is higher & trading at 15750.
- Yesterday it was majorly a Consolidation in the Global markets.
- Asian markets are slightly lower.
- After such a huge short covering rally consolidation is necessary to keep momentum intact.
- So this looks more of a consolidation and not of a trend reversal
- U.S GDP data is going to be out tomorrow.
- Perhaps market is waiting for the same and hence theres cautiousness.
- Most importantly , U.S VIX fell yesterday.
- In spite of U.S VIX falling , India VIX keeps on going higher.
- Yesterday as well in a Bullish market India VIX was higher.
- In U.S the VIX falls gradually but in India it doesn't fall for few days and then goes down at one go.
- FII's are on a selling spree and now almost every market participant knows the same
- Bank Nifty underperformed Nifty yesterday.
- This is because bank Nifty has outperformed Nifty in the last week
- So now a profit booking was on cards.
- As long as 15700 holds , uptrend is intact.
- Major downside only below 15700 for Nifty.
- Nifty might Trade between 15700 to 16000 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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