- U.S Markets closed lower Yesterday.
- Right now Dow futures are higher.
- SGX Nifty is down 150 points.
- Asian markets are lower.
- Yesterday there was a Fed event in U.S Markets.
- General expectations were an increase of 75 basis points
- Exactly the same happened and at 11.30 markets recovered sharply from lows
- Then at 12 as Fed governer started speaking , it was a complete Hawkish statement.
- This induced lot of volatility and also selling pressure.
- U.S Markets closed at the low point of the day.
- Dow Jones fell 500 points.
- Although all this happened, U.S VIX didn't shot up
- It stayed flat.
- HDFC Bank ADR was down 2% yesterday.
- This could bring pressure in Bank Nifty.
- However I feel yesterday was an over reaction in U.S Markets.
- Markets should stabilize from today.
- 18000 is a strong support for the day.
- Previously as well many times Nifty went above 18k but couldn't sustain.
- Nifty might Trade between 17900 to 18150 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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