- U.S Markets closed mixed Yesterday.
- Nasdaq closed in green but Dow Jones closed slightly negative.
- Asian markets are mostly higher.
- SGX Nifty is up 70-80 points.
- Yesterday was a highly volatile trading session.
- Nifty futures af one point of time crossed 17500 & from there it fell drastically.
- Nifty even broke 17200 at one point and then there was huge recovery in second half.
- India VIX was up 12% at one point of time.
- As soon as Nifty fell below 17200 I checked Global markets.
- All the Global markets were trading normally without any negative bias
- It was just our market which was Volatile yesterday.
- Reason is weekly options expiry.
- Yesterday was the weekly expiry and when there's huge put writing or call writing on one side and that level gets broken.
- It leads to big moves.
- Today we have the RBI meeting.
- RBI is expected to raise rates by 40 basis points.
- Most importantly , the commentary will be watched keenly by the market participants.
- Anything below 40 basis points will be considered as a big positive for the markets.
- Nifty might Trade between 17300 to 17600 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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