- 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.
- Markets yesterday were highly volatile.
- Reason was the gap down and also weekly expiry.
- Weekly expiry issues trigger huge Volatility Intraday.
- Markets yesterday opened lower then recovered close to 17700 followed by another round of selling close to 17550.
- Dow futures from negative turned positive & Nifty again went to days high.
- From there closing lower close to 17600.
- So it was all over the place yesterday.
- Issue is now with U.S Markets
- U.S Markets are making lower lows on a daily basis now
- Yesterday as well U.S markets closed lower.
- With Global sentiment being so bearish so cannot keep going higher at a brisk pace.
- 18000 is a strong resistance from here on.
- Generally last week of the month are more Volatile
- Gamma effect also kicks in.
- Yesterday Bank Nifty gave the first sign of profit booking
- Financials led the Market in last 1 month.
- Now people seem to be booking profits .
- Time to be cautious.
- Nifty might Trade between 17350 to 17650 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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