- U.S Markets closed higher Yesterday.
- Asian markets are mixed.
- Dow futures are slightly lower right now.
- SGX Nifty is up 130-150 points.
- So yesterday was the major Fed Event.
- Fed raised Interest rates by 75 basis points by tackle Inflation.
- This was a very bold move by Fed to double down the Inflation.
- Their were talks that if Fed raises rates by 75 basis points markets would crash.
- Exactly opposite has happened
- Nasdaq rallied more than 4% yesterday.
- S&P 500 more than 3% and Dow more than a percent.
- Yesterday I mentioned we are not going with complete optimism into the Fed Event.
- Which is quite good for the Markets.
- Markets have already factored in the negatives.
- Many traders place emphasis on the event.
- I place emphasis on the market movement before the Event.
- So now the Fed event is out.
- 16800-16850 is a crutial zone for Nifty.
- Once this is taken out there will be fireworks.
- Yesterday I mentioned 16400 Is a great buy zone.
- Just see how the markets have rallied from there.
- Nifty might Trade between 16650 to 16850 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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