1. U.S Markets closed lower yesterday.
2. Right now , U.S Futures are slightly lower.
3. SGX Nifty is down 20-30 Points.
4. So we are likely to have a negative opening today.
5. Yesterday the markets have decisively broke the budget day low.
6. 17350 was the budget day low and it was a good support to work with.
7. Yesterday we closed below it and also below 200 DMA.
8. So this market is breaking downwards.
9. Yesterday , FII's have sold for 4600 crores.
10. This is the highest selling for Feb Month.
11. I spoke to one of the Bank Managers yesterday regarding FD and loan rates.
12. FD rates have gone up to as High as 8%.
13. These are expected to increase in next 3 months as rate hikes are not expected in near future.
14. When FD rates are 8% the loan rates minimum should be 12-13% for the Banks to make some money.
15. In the Environment we are in , with such a massive Slowdown the loans automatically get discouraged.
16. This brings liquidity crunch in the market.
17. Also the High networth people would invest in FD as it offers a risk free return.
18. Markets in short term are all about interest rates and liquidity flow.
19. Also yesterday the GDP numbers were announced and they were at 4.4%
20. This indicates we are in a massive Slowdown in the economy.
21. Only the Ultra Rich segment has the spending capacity now and middle class not having more than 1 source of income are in a mess.
22. This is the ground reality.
23. Nifty might trade between 17100 to 17400 today.