Yesterday Indian markets were strong and closed at 17469 which is +293 points. Yesterday bank nifty was also strong and closed at 37284 which is +666 points.
Yesterday US market was flat to strong and closed positive by +35 points (+0.009%). IT index i.e. Nasdaq was strong and closed +100 points (+0.64%).
Following are the supports and resistance for two major indexes of INDIA.
- Nifty support – 17350-17425 & 17250-17300
- Nifty resistance – 17500-17550 & 17600-17675
- Bank nifty support – 36850-37000 & 36600-36750
- Bank nifty resistance – 37525-37650 & 37750-37950
Yesterday (Foreign institutional investors) FII were net Sellers and have sold 579 crores in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1736 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. 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.
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.
Yesterday FII’s have reduced their selling as we can see in the above-mentioned figures. DII’s are buying for a long time and hence markets are sustaining above 17000 and hence we can say that if FII’s stops selling we will bounce towards 18000 levels.