- U.S Markets closed higher yesterday.
- Right now Dow futures are flat.
- Asian markets are mixed.
- SGX nifty is indicating 80-100 points gap up.
- Everyday market has been opening with large gaps.
- These are either down or up.
- Last 2 days it was a gap down , today it is a gap up.
- Today the focus is on RBI.
- RBI policy is due at 10 AM today.
- RBI Governer has already prepared market this time for a rate hike.
- Previously , this wasn't the case.
- RBI gave a shocker to the Market by suddenly doing a hike.
- This shocker caused the Market to crash.
- Expecting a no shocker policy from RBI today.
- As they know it's repurcussions could be dangerous.
- There would be Intraday volatility going into the policy but I have a gut feeling option sellers would make good money today.
- Specially put writers.
- U.S VIX crashed 5% yesterday.
- Expecting India VIX to go down after the policy as well if policy is as per expectation.
- Stoploss for long trades and put writing should be 16350 ie , yesterday's low.
- Do not chase the gap up , expecting some selling during the day and that's a good place to go long.
- As long as rate hike is below or equal to 50 basis points , Bulls should be happy.
- Nifty might Trade between 16340 to 16600 today.
- stockmarketadvisory.in
U.S Markets closed higher yesterday. Most importantly , S&P 500 VIX crashed 10%. There was huge Volatility in global markets due to Fed event. Markets remain volatile only when they have topped out or have bottomed out. Right now I feel we have bottomed out at 16850. Asian markets are slightly lower now. Dow futures are lower. SGX Nifty is at 17500. Finally , the most awaited day has come. Budget 2022 is going to be presented today. Expectations are of a good and stable budget. Reasons are the Elections coming up and LIC IPO in March. Govt very well knows if LIC IPO has to go through , Market sentiment has to be good. Without good market spending it would be very difficult for IPO to go through. Market had already fallen a lot before the budget. Although we have rallied in last 2 days but still we have some upside left. Though I feel it's not favourable to chase today's gap up. Today's gap up is a good opportunity to book profits those who carried longs. Bud
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