Yesterday in the 1st half nifty was week but recovered in the 2nd half. Indian markets have shown strength yesterday and closed positive at 18068 which is +151 points. Yesterday’s bank nifty was weak but recovered and closed positive at 39438 which is -135 points.
The US market is celebrating Diwali in a true sense. Dow Jones is super positive and has made all-time high levels yesterday. Dow Jones yesterday closed positive by +104 points (+0.29%). IT index i.e. Nasdaq was also positive and closed +10 points (+0.067%).
Following are the supports and resistance for two major indexes of INDIA.
Nifty support – 17925-18000 & 17825-17900
Nifty resistance – 18100-18175 & 18200-18265
Bank nifty support – 39125-39300 & 38800-38950
Bank nifty resistance – 39675-39750 & 39950-40100
On Wednesday (Foreign institutional investors) FII were net Sellers and have sold 861 crores in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1912 crore in the cash market.
The Global markets are positive and trading at all-time high levels but still Indian markets have started recovering. Investors can start investing now. I still don’t think that this Bull Run has ended. This can be seen as a running correction and we can again make all-time highs in short term.
In US Fed has started tapering where FED will reduce the bond-buying program where FED now will buy $15 Billion bonds from $120 Billion bonds. The Interest rates are still near 0% and the reduction of the bond-buying program was known by the US markets and hence US markets are making all-time high levels.