- U.S Markets crashed Yesterday.
- Dow Jones closed lower by 600 points.
- Nasdaq was down more than 2%.
- U.S VIX rose 15% yesterday.
- These are not good signs for the Bulls.
- Asian markets are lower as well.
- SGX Nifty is down 100 Points.
- 17400 is level we are likely to open.
- Yesterday as soon as markets opened it kept going lower and lower
- There were just short bounces of 20-30 points but the price action was fully against the Bulls.
- First Nifty paused near 17600 and this got taken out.
- Then 17500 got crushed out towards end of the day.
- Both FII's & DII's were net sellers Yesterday.
- Markets all over the World have rallied over 15% in just 1.5 months.
- Ahead of Fed meeting this week there seems to be huge profit booking.
- Price action gives an indication that market is pricing in some future expected negative news.
- Big players know it before us.
- 17500 PE had the highest open interest for this week.
- Today this is likely to break at open and we can expect more downfall.
- 17400 & 17200 are the next major supports for Nifty.
- Bank Nifty is even worse.
- When it goes up it rallies one way and same on the way down.
- Nifty might Trade between 17200 to 17550 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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