FII’s Selling Is Something To Worry For Indian Stock Markets

Today morning both major US index futures are positive by +120 and +57 points respectively hence Singapore nifty (SGX NIFTY) trading Positive by +120 points hence will be opening flat to small gap up on Indian Stock Markets.

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On Friday Indian markets were flat to negative and Nifty closed at 17511 which is +5 points. On Friday bank nifty was flat to Positive and closed at 37105 which is+23 points.

On Friday US market was positive and closed in green. Dow was+216 points (+0.60%). IT index i.e. Nasdaq was also strong and closed +113 points (+0.73%).

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

  • Nifty support – 17475-17525 & 17375-17425
  • Nifty resistance – 17600-17625 & 17675-17750
  • Bank nifty support – 36800-36900 & 36500-36600
  • Bank nifty resistance – 37375-37575 & 37650-37850

Yesterday (Foreign institutional investors) FII were net Sellers and have sold 1092 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 386 crores in the cash market.

The way FII’s are selling since last month we can assume that they were aware of the new variant and hence they booked their portfolio on higher levels.

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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.

I haven’t been changing the above lines for a long time and the only reason is FII’s because they have been selling for a long time and there is no single day when they have purchased in the cash market. This selling needs to be reduced/stop sooner if we need to hold a big level and recent low of 16780 levels. If this selling increases further we will move below 16780 which will be very difficult for Indian markets.

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I am still with the above statements as FII’s are still selling in the markets. The 2nd half of December can be seen as dry with volumes as many big institutions will not be dealing in markets as it’s a year-end for FII’s.