- U.S Markets crashed on Friday.
- Asian markets are down.
- SGX Nifty is down 400 Points.
- This is a serious & a large gap down.
- On Friday , Fed Chairman indicated pressure for the Economy.
- He also hinted recession in U.S is highly likely and rate hikes are the only option to curb the pressure.
- This has led to a massive sell off in U.S Markets.
- Dow Jones crashed 1000 points on Friday and S&P 500 and Nasdaq crashed % each.
- U.S VIX rose 15% on Friday.
- This indicates fear among traders.
- I expect U.S Markets to break the recent lows.
- The recent low was near about 3600 on S&P 500.
- Which is 10% lower from the current levels.
- Indian Markets might not fall as much as Global markets.
- But we will definitely not go higher.
- My view is Bearish right now.
- There may be short covering bounces which may surprise you in between.
- Also the Volatility will be extreme from here.
- Stoploss for Short trades is 18k.
- Downside targets are open and will be updated based on markets trend.
- Nifty might Trade between 17100 to 17400 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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