- U.S Markets closed slightly lower yesterday.
- Right now Dow futures are slightly lower.
- SGX Nifty is down 40-50 points.
- Nifty is likely to have a gap down opening today.
- Yesterday was a terrific expiry for Bulls.
- Usually on monthly expiry big moves are expected.
- As too many contracts expire on the same day.
- Yesterday it was the same story.
- As soon as nifty broke out of 18400 , there was a huge rally.
- In just 30 minutes nifty shot up 70-80 points.
- Now the Nifty future premium for December series is too high.
- Nifty future is trading near 18600-18650.
- Such huge premium indicates excessive bullishness in the markets.
- Yesterday sensex and bank nifty hit all time highs.
- Now , 18000 is a very strong support.
- We might have resistance at 18600 nifty spot.
- Once this is taken out then next resistance is only at 19k.
- The trend is bullish and markets are Bullish too.
- Nifty might trade between 18350 -18600 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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