- Dow futures are slightly lower.
- Asian markets are mostly mixed right now.
- SGX Nifty is flat.
- Nifty is likely to have a flat opening today.
- Since last many days , Nifty is opening flat.
- If I'm not wrong , today will be the sixth straight day of flat opening.
- Friday was a volatile trading session.
- Nifty opened flat and traded negative throughout.
- During the day there was some recovery from the lows.
- Even that recovery got sold into later on.
- Nifty tested 18200 and there was a huge rally after 2 pm.
- So in all it was a flat closing but there was some intraday Volatility.
- Generally last weeks of the expiry are volatile weeks.
- All the contracts get squared up , ie futures and options.
- This leads to Volatile trading moves.
- 18200 -18400 is the short term range on the Nifty.
- 18400 was the recent high and Nifty found multiple supports near 18200.
- So this becomes a short term range for now.
- The way to trade the range is to buy near support and sell near resistance.
- That's where risk reward turns to your favor.
- Long term range is 18000-18500.
- I don't think any of the above levels would get taken out this expiry.
- Nifty might trade between 18200-18400 today.
- Once we get a closing above or below any of these levels then we shall look at the next plan.
- Until then the above plan holds.
- 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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