- U.S Markets closed higher Yesterday.
- Dow futures are slightly higher right now
- Asian Markets are higher.
- SGX Nifty is close to 17300.
- Big Big gap up on cards today.
- Yesterday U.S Inflation numbers were announced.
- Expectation was 8.1% but they came at 8.2%
- Dow Futures fell 600 points as soon as this news broke out.
- As soon as U.S Markets opened this big gap down was bought into.
- Dow Jones recovered from -600 to +850 points.
- This is some rally.
- My sense is Markets may have factored in this negative by now
- Hence the Yesterday low of 3500 on S&P 500 should hold at least for a month now
- Markets bottom out much before the actual event.
- Also Markets factor in negative news much before the event as well
- This is the nature of stock market.
- One has to understand the Market language in order to make money
- Worst Inflation numbers of 40 years and still markets rallying.
- This is the beauty of stock market.
- Markets react differently in various situations.
- 17400-17500 is the resistance zone.
- Will look to build fresh once this gets broken.
- 17200 to 17500 is the range for Nifty now.
- 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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