Skip to main content

Pre- Market Analysis (5th May 2022)


  1. U.S Markets closed higher yesterday.
  2. Asian markets are higher.
  3. SGX nifty is up 150 points.
  4. Yesterday was a very tricky and unexpected session.
  5. As soon as Market opened there was a continuous selling.
  6. Market was falling left , right and center without taking any support.
  7. I was wondering why is the Market going against the global cues
  8. Then we got the news about RBI Governer press conference.
  9. So some informed people already knew about this rate hike.
  10. Hence there was a sudden selling in the markets.
  11. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points.
  12. Repo rate is the rate at which banks borrow money from RBI.
  13. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier.
  14. This slows down the growth and liquidity in the Market temporarily.
  15. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI.
  16. RBI uses that money without having to pay any interest on it.
  17. Increasing CRR means RBI is trying to curb liquidity in the Market.
  18. Banks keeping more money with RBI means lesser loans in the economy leading to lot less liquidity.
  19. Sudden decision of rate hike has spooked the markets.
  20. When RBI knows it's negative for market and economy in the short run , why go for it then?
  21. The reason is inflation.
  22. When people have more spending capacity the seller controls the price as there are many buyers for one seller 
  23. Fed had prepared markets well in advance for the rate hike.
  24. That's the reason even after the rate hike Dow rallied 1000 points.
  25. It was totally a bad decision by RBI yesterday to give a shock ahead of LIC IPO.
  26. Nifty might Trade between 16600 to 16900 today.
  27. stockmarketadvisory.in

Comments

Post a Comment

Popular posts from this blog

BJP Falls short of Majority (5th June 2024)

1.U.S Markets closed higher Yesterday  2. U.S Futures are trading higher now. 3. Asian markets are higher. 4. Global cues are positive currently. 5. U.S Markets have made a short term bottom and now have reversed. 6. Gift Nifty is up more than 100 Points. 7. Yesterday was a big surprise to everyone. 8. Contrary to the exit Poll , things have been changed dramatically.  9. Exit Polls indicated a cakewalk win for the BJP. 10. Reality of the Ground level was entirely different. 11. There is BJP Govt forming but with a Coilition Govt. 12. Coilition Govt changes many aspects. 13. Firstly , the Govt cannot take decisions on its own. 14. It has to get approval of other parties as well. 15. This would hamper the growth prospects and future plans. 16. Last 10 years , the Government had come with a simple majority. 17. They worked freely. 18. This is a way good for democracy 19. One Govt dominating is not good for the Country , now everyone has to work for welfare of Country...
Post a Comment
Read more

Global Shock !! (6th August 24)

1. U.S Markets closed lower YESTERDAY.  2. All the indices closed lower. 3. Right now , Dow Futures are higher. 4. Asian Markets are all higher. 5. All the Global Markets are Positive right now. 6. Last 3 days , there has been a flash crash in all the Global Markets. 7. There was a Mayhem specially in the Japanese Markets. 8. Japan had hiked the interest rate after 15 long years due to which their currency depreciated and it caused a 20,% fall in Japanese markets. 9. There are warnings of U.S recession post the Jobs data report. 10. Israel - Iran war has been taken escalation.  11. All these news have spooked the Global Markets.  12. U.S VIX jumped 400% in last 4 trading sessions. 13. India VIX jumped 50% Yesterday.  14. Although it doesn't impact us at all  , it's the nature of markets to react on news. 15. Right now , Nikkei the Japanese index has opened positive  16. 24000-23850 is a very strong and final support. 17. I expect yesterday's low...
Post a Comment
Read more

Global Markets Mayhem !! (5th Aug 24)

1. U.S Markets closed lower on Friday. 2. All the indices closed lower. 3. Right now , Dow Futures are lower. 4. Asian Markets are all lower. 5. All the Global Markets are Negative today. 6. From Thursday to Monday Morning , U.S Markets have crashed more than 6%. 7. This is a terrible & an Alarming fall. 8. U.S VIX jumped another more than 20% on Friday. 9. This is the fearful data point. 10. Reason for all this is because of Geopolitical conflicts. 11. Iran - Israel tensions. 12. Japan currency depreciation etc. 13. All this is leading to a flash crash in the Markets. 14. 24500-24400 is a crutial support for nifty. 15. We are likely to open closer to these levels as per Gift Nifty. 16. First hour is the key today. 17. If we do not break the first hour low throughout the day then we might expect a reversal. 18. A further correction may be expected if the first hour low gets taken out. 19. Nifty might trade between 24300 to 24700 today. 20.  stockmarketadvisory.in
Post a Comment
Read more