- U.S Markets closed lower yesterday.
- Right now , Dow futures are lower.
- Asian markets are lower.
- SGX Nifty is down 100-120 Points.
- Today we are likely to have a gap down opening.
- Reason is the U.S FED policy.
- Yesterday, the Fed Chairman has increased the rates by 75 basis points.
- Market expectations were 100 basis points.
- This was a third straight increase of 75 basis points to tackle inflation.
- Inflation in U.S has been above 8% Consistently since past many months.
- FED has to be ultra aggressive in tackling the same
- FED was also a bit Hawkish and commented that there would be more rate hikes in future.
- U.S markets were highly volatile and we're moving all over the places.
- Finally closing lower.
- 17400 to 18100 is the range for Nifty.
- This is a broader range
- Within this range market has been making huge swings
- Indian Markets are outperforming U.S Markets.
- 17500 PE has the highest open interest today.
- This would be a good support for today.
- Resistance to kick in near 17800.
- Nifty might Trade between 17500 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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