Yesterday Indian markets have shown some kind of short covering and closed positive at 18268 which is +143 points. Yesterday bank nifty was negative which can be termed as profit booking as it has been running since 4-5 days but managed to close positive. Bank nifty closed at 41238 which is +45 points.
The US market yesterday was positive but closed flat. Dow Jones yesterday closed positive by +15 points (+0.04%). IT index i.e. Nasdaq was also positive and closed +9 points (+0.05%).
Following are the supports and resistance for two major indexes of INDIA.
Nifty support – 18100-18175 & 17950-18050
Nifty resistance – 18300-18375 & 18425-18475
Bank nifty support – 40825-41000 & 40525-40600
Bank nifty resistance – 41350-41500 & 41650-41800
Yesterday (Foreign institutional investors) FII were net Sellers and have sold 2369 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1385 crore in the cash market.
The global markets are strong at all-time highs but now Indian markets are correcting which is just running correction and profit booking. Indian markets will again start their up move after correcting anywhere near this level. 17950-18000 is a very very strong support zone for investors and they don’t need to worry until and unless the market closes on the levels mentioned. Traders should be cautious while buying stocks on higher levels especially when they are trading on leverage positions and trading in the derivatives market.
Yesterday Nifty made a low of 17968 which and be considered as short term bottom for markets. These levels have been mentioned by us for since last many days as it was a big support for the market. The investors have not worried and are holding their investments as the levels mentioned haven’t broken and the market recovered and now looks bullish again after correcting.
The above analysis was made yesterday morning before market opening and the market has recovered from lows and has closed 250 points higher from recent lows.