- U.S Markets closed mixed Yesterday.
- Asian Markets are mixed.
- SGX Nifty is up 50-60 Points
- Yesterday it was again a flat expiry.
- IT stocks have been falling.
- Banking stocks have been gaining.
- This seems like an obvious trade now.
- Larger range for Nifty is 17500 to 18000 now.
- Immediate short term range is 17600 to 17800.
- Bank Nifty range is 41000 to 42000
- Expecting Consolidation to continue for a while.
- Yesterday the ECB has hiked interest rates by 75 basis points.
- RBI also has informed that they would be revising the monetory policy.
- They have announced to conduct a meeting on 3rd November.
- Such sudden meeting gives an indication that RBI may again raise rates.
- Looking at Inflation and the way other Banks have been raising rates.
- This seems a larger Possibility now.
- India VIX is now close to 16.
- Option Premiums are too low.
- Expecting VIX to raise before RBI event.
- That would be a good time for option sellers.
- As of now premiums are too low so aggressive bets are not advisable.
- Nifty might Trade between 17600 to 17900 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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