- U.S Markets closer lower yesterday.
- Right now Dow futures are slightly higher.
- Surprisingly SGX Nifty is indicating a gap up today.
- Bears would love to sell this kind of gap up.
- In such a bearish trend gap ups tend to be sold into.
- Gap downs tend to be bought into.
- Yesterday Nifty opened with a large gap down.
- This gap down got bought into.
- Market was firm throughout yesterday after a large gap down.
- India VIX had crossed 20 Yesterday at open.
- IT Index after a large rally again seems to be under pressure.
- This year isn't a trending year for the markets.
- This is a complete Consolidation Year with huge sideways movements.
- In this market one cannot trade each and every day and also all the time.
- That becomes very much difficult.
- Whenever you say expect a 1000 point trade on index you enter take profits and sit on the sidelines.
- This is the best way to approach this kind of high volatile markets.
- I expect markets to be bearish over the short term.
- 17200 is a good support for Nifty & this got held yesterday.
- 17500 is a good resistance.
- Break of any of the two levels would lead to a trending move.
- Nifty might Trade between 17200 to 17500 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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