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Market Setup

Trump made noises again this time threatening military actions against North Korea and supply of missiles to South Korea. This triggered a 200 point fall in Dow jones and that caught up with Asian markets with Hong kong down more than 250 points at the opening. Other Asian markets are also in red. NIFTY will again open low today probably below 9930 and immediately 9900 will be tested. If the day is really bad 9850 might be tested and all the gains made yesterday would disappear. This is going to be a weak day and even on the upside 9960 to 9980 could be a big resistance.
Even the F&O cues also pointing to a down day with put buying resuming at 9900 levels and call shorting continuing at 10,000 level. All in all expect a negative day and close below 9900 unless Europe gives a positive signal and that might take NIFTY above 9900.

Rajan in the news

Crude oil has surged today and crossed 53 dollars. After Hurricane Harvey another hurricane is developing in Atlantic and its likely to move towards Florida. It is one located in West Indies Islands and has winds speeds gusting at 80km/ph. Its likely to intensify and touch florida by Sunday or monday. This will put pressure on crude exploration leading to a surge in crude prices. And in the other news the book written by Raghuram Rajan “I do what I do” is released in Chennai last evening. If you want to get some interesting insights from the World’s most popular Central bank governor do grab a copy of this book! Am going to do it soon!