Covid Variant Is Impacting India’s Stock Markets And Global Markets As Well

Today morning both major US index futures are positive by +80 and +20 points respectively hence Singapore nifty (SGX NIFTY) trading positive by +10 points hence will be opening flat to gap up on Indian Markets.

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Yesterday Indian markets were very weak in 1st 15 minutes but recovered and closed at 17053 which is+27 points. Yesterday bank nifty was weak and closed at 35976 which is-49 points.

Yesterday US market was strong and closed positive by +236 points (+0.68%). IT index i.e. Nasdaq was also strong and closed +291 points (+1.88%).

Following are the supports and resistance for two major indexes of INDIA.

  • Nifty support – 16925-17025 & 16700-16800
  • Nifty resistance – 17150-17200 & 17275-17300
  • Bank nifty support – 35500-35625 & 35125-35350
  • Bank nifty resistance – 36350-36550 & 36650-36850

On Friday (Foreign institutional investors) FII were net Sellers and have sold 3332 crores in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 4611 crores in the cash market.

The way FII’s are selling since last month we can assume that they were aware of this and hence they booked their portfolio on higher levels. We need to be cautious now as markets are overvalued fundamentally and the new COVID variant can bring lockdown as we are watching in big countries like Germany.

Also Read: Must Know Monday’s Stock Market Update

FII’s are selling huge since the last few days and hence any bounce in the market is not sustainable and is sold out. These figures are about to worry for Indian markets. If Indian markets want to go towards all-time high levels then FII needs to start buying.