- U.S Markets closed higher on Friday.
- Dow Jones closed 1000 points higher.
- It was a huge short covering rally.
- U.S markets have now recovered more than 10% from their 52 week lows.
- This is a great recovery considering global cues.
- Right now Dow futures are slightly lower
- SGX Nifty was above 18k over the weekend.
- From last 3 trading sessions , SGX Nifty showed an opening above 17900.
- But on all the occasions we have opened close to 17800.
- Will we open today exactly what SGX Nifty has been suggesting.
- 18000 would be a resistance for this expiry.
- Aggressive calls have been written plus it's a round number.
- Round number acts as resistances / supports.
- Bank Nifty was outperforming for whole of October expiry.
- Last 2 trading sessions Bank Nifty has been witnessing serious underperformance.
- This is dragging Nifty too.
- Reliance is keeping Nifty in check.
- If we open below 17800 today and cross it during the day then we would be heading towards 18k.
- The pace of markets has been reduced considerably.
- Markets have been trading in a narrow range in Intraday.
- Nifty might Trade between 17700 to 18000 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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