- U.S Markets closed higher Yesterday.
- Asian markets are mostly higher.
- SGX Nifty is up 200-250 points.
- Nasdaq closed higher by more than 7%.
- All the shorts were taken to cleaners yesterday in Technology numbers.
- U.S Inflation eases to 7.7% in October.
- Inflation cooling down is a good sign for the economy.
- Also going ahead people are expecting it to reduce further.
- This has created a huge short covering rally yesterday.
- 18300 is a stiff resistance for us.
- Once we cross this level we would be moving towards all time high.
- Until yesterday I was bearish because I didn't expect Inflation numbers to change the game so rapidly.
- As Inflation eases, expecting buying to emerge into Technology stocks as well.
- Expecting money to shift from Banking to Technology stocks.
- Yesterday could be termed as relief rally across global markets.
- Continuation of the same would gather momentum.
- 18300 for nifty.
- 42k for Bank Nifty are critical zones.
- Once these levels are taken out we can be expecting further momentum.
- Nifty might trade between 18100-18350 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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