Credit Suisse Buyout by USA is considered positive by Europe markets and USA Markets but SGX Nifty is indicating gap down. Let's see whether our markets form the base or they are waiting for the Fed meet rate pause or rate cut announcement on 22 Mar. We are surprised that Powell is silent during such mega crisis when banks are collapsing in USA.
This is a pretty big deal. For those who don’t know, Credit Suisse has been marred by numerous scandals, high-level exits and massive treasury losses in recent years. In fact, fears of Switzerland’s 2nd largest bank going bust have been floating around since last year! Credit Suisse’s failure to turnaround operations coupled with negative global news caused a bank run. A bank run happens when a large number of people withdraw their money from a bank at the same time. They do so because they are worried that the bank might not be able to give them their money back. This can cause serious problems for the bank including a collapse.
UBS will pay CHF 3 billion ($3.2 billion) in an all-stock deal to acquire Credit Suisse. Credit Suisse's market capitalisation stood at $8 billion as of close on March 17.
The biggest joke of USA now is:
I was shocked when my cheque was returned with No bank instead of No balance
Check our bank nifty options now and start rolling in profit every day
Nifty March futures ended at 17,189, a premium of 141.7 points.
Nifty March futures fell 2.7% and 6,654 shares in Open Interest.
Nifty Bank March futures ended at 39,834.35, a premium of 438.15 points.
Nifty Bank March futures fell 6.14% and 6,623 shares in Open Interest.
Securities added to the ban period: Indiabulls Housing Finance, Gujarat Narmada Valley Fertilizers & Chemicals Securities removed : Nil
This week could be the start of price management. Volatility should come down slowly and markets should be able to find some base. The only number important for all of us is 16850.
It is the stop loss for all the long trades. If 16850 is broken we may see sharp dip till 16400 even. But the trade for the week should be contra. Nifty and banknifty have some reversal signals and hence base formation is important.
Nifty. Gap down of 100 points is expected. Support is placed at 16900/16850 and resistance is placed at 17250.
BankNifty. The index will continue to remain weak. Support is placed at 39200 and resistance at 40300.
Derivative. Data continues to be weak but occasional bounce is expected from lower levels due to options data.
Levels are future levels. Contra trading is the way.
