- U.S Markets crashed yesterday.
- Right now Dow futures are slightly higher.
- SGX nifty is higher & trading at 15700.
- Asian markets are mixed.
- Yesterday as well there was a huge gap up.
- Today as well we are about to open lower.
- Yesterday as soon as Markets opened there was a recovery towards the later part of the day.
- Our market is reacting totally to the Macro news and events.
- Today we are set to have U.S GDP data in the evening.
- This will drive the further positioning of the traders.
- Yesterday during the Market hours Dow futures recovered
- European markets inched higher and then short covering began in our markets.
- Today's gap down would once again test the option sellers.
- Huge Open interest was added yesterday in put options.
- 15600 and 15700 PE were written aggressively.
- In this Kinda scenario it's better to keep as lighter positions as possible.
- As this gap up gap down is trapping the traders.
- Plus we have an event tonight.
- This Volatility in our markets is due to Volatility is U.S market.
- Dow was up 400 points at one point of time and then closed 400 points lower.
- Nifty might Trade between 15600 to 15900 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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