- U.S Markets closed higher Yesterday.
- Asian markets are mostly higher.
- SGX Nifty is up 150 points.
- Yesterday it was a treacherous expiry.
- Until 1 pm markets were rangebound.
- Nifty was trading in a band of 100 points.
- But then there was a sudden sell off in the Markets.
- Most of the Nifty stocks fell from days high to close at days low.
- Volatility has picked up since the last week.
- Nifty from 18000 went to 17350 and then 17700 finally closing below 17500.
- This was the Volatility in the last week.
- Yesterday I expected FII sell figure as markets fell drastically after 1 pm.
- To my surprise institutional net figure was positive
- Why had markets made such erratic move despite the same is a burning question.
- Reason might be due to expiry related issues.
- Yesterday was the monthly plus weekly expiry.
- So during such expirys markets tend to be more volatile.
- We are starting off September series with a positive note with today's gap up
- Nifty might Trade between 17600 to 17800 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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