‘This’ Is The Reason Why There Is Relief Rally In Markets All Over The World After 18 Days Of Ongoing War Between Ukraine And Russia

Today morning both major US index futures are positive by +137 and +15 points respectively and hence Singapore nifty (SGX NIFTY) trading negative by -100 points hence will be an opening gap down on Indian Markets.


On Friday Indian markets were strong on weekends. Nifty closed at 16630 which is +35 points. Yesterday bank nifty was also strong and closed at 34546 which is +70 points.

On Friday US market was negative. Dow was -229 points (-0.69%). IT index i.e. Nasdaq was also negative and closed at -286 points (-2.18%).

On Friday (Foreign institutional investors) FII were net Sellers and have sold 2263 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1686 crore in the cash market.

The war is cooling off after 18 days and now Ukraine and Russia will be talking with each other to end the war. This is what the market liked and hence there was a relief rally in markets all over the world.

We don’t need to be overconfident as war is not ended yet. The market will run as everything is good but that is not true, the market tends to react more than normal. Until and unless this problem gets solved traders should still avoid trading or can trade with a very small quantity in markets but no trade is still a better option hence we have not given any support and resistance levels above. Investors should invest in every dip.

Also Read : Intensifying War Between Russia And Ukraine Affects Global Stock Markets

Those investors who invested in every dip will be enjoying the super-profits. They can stay invested or can exit as they are gaining 5-6% in a day or 2.

The inflation will be on the highest levels if war continues as fuel prices and metal prices will rise as Russia is a major exporter of this. This inflation is a reason to worry for markets as interest rates can increase by FED and RBI.

As mentioned the prices of metals and oil came down drastically when there was news of war coming closer to an end.

Also Read : India’s Stand For Russia At UNSC Is An Apt Example Of A Friend In Need Is A Friend Indeed

Now Russia has cooled off but the way FII’s are selling is something insane and hence investors should wait for dips in the market to invest for the long term. Traders should avoid trading and focus on capital protection.

The market will not consider any news of new covid variant in china until and unless this news comes from other countries. So still we need to look at crude oil and metal prices which are a reason to worry and also the war tensions.