On Wednesday Indian markets again made an all-time high of 16701but on a closing basis market corrected and closed 150 points from the day’s high at 16568. On Wednesday Bank nifty corrected from 36225 which was a gap up open but corrected and closed below 35800 at 35555 which is bad for bank nifty can get more corrected further.
The US market yesterday and on Wednesday corrected heavily by around 500 points on a closing basis. Dow Jones made a low of 34690 from all-time high levels of 36625. Dow yesterday was negative by -69 points (-0.19%), whereas the IT index i.e. Nasdaq also corrected on Wednesday and yesterday but tried to recover and closed yesterday by +15 points (+0.11%).
Following are the supports and resistance for two major indexes of INDIA.
Nifty support – 16275-16375 & 16125-16225
Nifty resistance – 16475-16575
Bank nifty support – 34800-35000 & 34350-34550
Bank nifty resistance – 35600-35800
On Friday (Foreign institutional investors) FII were net sellers and have sold 595 crores in the cash market. On the other hand (Domestic institutional investors) DII were net sellers and have sold around 729 crores in the cash market.
US market corrected heavily as FED has given some indication that the stimulus package can be withdrawn soon. The date and time and the amount of the package to be withdrawn are not yet declared and hence this correction can be seen as running correction.
Indian market will also get corrected. All the investors must look at 16125 levels on Nifty on a closing basis. If the market closes below these levels then correction can extend till 15575.