- U.S Markets rallied on Tuesday.
- Yesterday they were majorly flat
- Right now , Dow Futures are higher.
- SGX Nifty is up 100-150 Points.
- Asian markets are higher.
- U.S VIX fell 5-6% over previous 2 trading sessions.
- VIX crashing indicates stability and reduction of Volatility over the coming days.
- This is quite beneficial for Option writers.
- Indian Markets broke out of 17200 zone which was a major hurdle.
- Now markets have turned Bullish.
- 17200 is the stoploss for long Positions now.
- Markets have now become very difficult to trade.
- Mondays low was 16900 and now we are at 17400.
- These market swings with huge gap openings are going on since past 1 year
- This is also a market phase and would end soon.
- Markets would come to terms sooner than later.
- Due to this Mayhem in the Global Markets & excessive news flow , Volatility increases.
- 17200 to 17500 is the immediate range for Nifty.
- Look for dips close to 17200-17250 to go long
- Do not chase gap ups
- You will hardly get 50-70 points after such huge gap but stoploss would be 200 points
- This doesn't turn risk - reward into our favour.
- 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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