Here Is How US’ Decision Of Federal Reserve Tapering Affected Stock Markets

Today morning both major US index futures are flat by +5 and +17 points respectively hence Singapore nifty (SGX NIFTY) trading Positive by +110 points hence will be opening flat to gap up on Indian Markets.

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Yesterday Indian markets were negative and Nifty closed at 17221 which is -103 points. Yesterday bank nifty was flat to Negative and closed at 36789 which is -104 points.

Yesterday US market was super positive after a fed decision on tapering and closed in green. Dow was +383 points (+1.08%). IT index i.e. Nasdaq was also super strong and closed +327 points (+2.15%).

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

  • Nifty support – 17150-17225 & 17025-17075    
  • Nifty resistance – 17350-17400 & 17425-17475  
  • Bank nifty support – 36525-36625 & 36200-36375    
  • Bank nifty resistance – 37050-37150 & 37275-37375    

Yesterday (Foreign institutional investors) FII were net Sellers and have sold 3407 crores in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1553 crore 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. The COVID new variant is not that harmful which is proved globally but still, FII’s are selling and the reason behind this can be inflation issues in the future and RBI start increasing interest rates.

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

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.

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.

Also Read : Stock Market Update With Closing Of Indian Markets Weak Yesterday

US FED Decision mentioned below

Federal Reserve Keeps Fed Funds Range Unchanged at 0.25% to 0.25% positive impact

Fed doubles pace of Tapering

*FOMC: Will Trim Monthly Treasury Purchase Rate By $20 Billion

*FOMC Will Trim Monthly MBS Purchase Rate By $10 Billion

*Ten Fed Officials See Three Rate Increases in 2022; Five Officials See Two Increases in 2022

*FOMC: Inflation Levels Elevated On Pandemic, Supply Chain Issues

*Fed Officials See Inflation of 5.3% at End of 2021; 2.6% for 2022; 2.3% for 2023