Here Is How Worsening Covid Situation In Germany Affecting Global Stock Markets

Today morning both major US index futures are flat by +10 and +45 points respectively hence Singapore nifty (SGX NIFTY) trading negative by -25 points hence will be opening flat to a small gap down on Indian Stock Markets.

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Yesterday Indian markets were flat to positive and Nifty closed at 17516 which is +47 points. Yesterday bank nifty was weak and closed at 37082 which is-202 points.

Yesterday US market was flat and closed flat by 0 points (-0.001%). IT index i.e. Nasdaq was weak and closed -269 points (-1.71%).

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

  • Nifty support – 17375-17425 & 17275-17350    
  • Nifty resistance – 17550-17600 & 17625-17675  
  • Bank nifty support – 36750-36850 & 36500-36600    
  • Bank nifty resistance – 37275-37375 & 37525-37650

Yesterday (Foreign institutional investors) FII were net Sellers and have sold 1586 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 783 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. 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 : Indian Stock Markets Update Today

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.