- U.S Markets closed lower on Friday.
- 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 have now turned clearly bearish.
- The most worrying sign now is U.S VIX.
- U.S VIX closed above 30 on Friday.
- VIX above 30 is a dangerous sign for the markets.
- This shows the fear is extreme.
- Generally, when the fear is extreme the Volatility is also the extreme.
- The trend has now turned clearly bearish
- U.S Markets have now broken Russia - Ukraine war lows.
- 15200 was our low during Russia - Ukraine war.
- We are still 2000 points away from those lows.
- Our markets have been outperforming compared to rest of the Global markets.
- The only Question is for how long?
- For how long can we keep outperforming the Global markets is a million dollar question.
- Bank Nifty which was providing strength to the markets in last 2 weeks has also turned bearish.
- Infact it's worse than Nifty.
- 17200 is a very strong support for Nifty now.
- If 17200 breaks then we head towards 17000.
- Nifty might Trade between 17200 to 17500 today.
- Will try a long near 17200 as markets are oversold for a short covering bounce.
- If it fails will short again.
- 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
Comments