- U.S Markets closed lower Yesterday.
- Right now , Dow futures are slightly higher.
- SGX Nifty is hovering around 17300.
- After a long time we are going to have a flat opening.
- Everyday we have been used to gap up / gap down openings.
- Yesterday I had advised not to chase gap up.
- Markets rallied more than 500 points
- And another gap up doesn't have risk reward in our favour.
- Buying Opportunity was close to 17200-17250 and today we might get that opportunity.
- Upper resistance comes around 17500.
- Expect Nifty to consolidate within this range for a while
- If 17200 breaks we would be retesting 17000.
- Bank Nifty has also recovered from lows.
- Financials are showing strength.
- Today is Friday and generally Friday's are highly volatile.
- FII's like to book profits on their positions so they might do some profit booking today in 2nd half.
- FII short Positions are between 75-80% now.
- This indicates a highly oversold territory.
- Nifty might Trade between 17180 to 17480 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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