Yesterday Indian markets bounced back closed in green. Nifty closed at 16770 which is+156 points. Yesterday bank nifty was also strong and closed at 34607 which is+168 points.
Yesterday US market was super positive and closed in green. Dow was +560 points (+1.60%). IT index i.e. Nasdaq was also Positive and closed +360 points (+2.40%).
Following are the supports and resistance for two major indexes of INDIA.
- Nifty support – 16775-16840 & 17625-16700
- Nifty resistance – 16890-16925 & 16965-17050
- Bank nifty support – 34400-34600 & 33900-34025
- Bank nifty resistance – 34900-35050 & 35225-35325
Yesterday (Foreign institutional investors) FII were net Sellers and have sold 1210 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1405 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. The COVID new variant is not that harmful which is proved globally but still, FII’s are selling and the reason behind this can be inflation issues in the future and RBI may start increasing interest rates.
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 we broke the above-mentioned level of 16780 which we assumed short-term bottom. We are still selling on the rising market as mentioned. The reason behind this is FII’s as I have been saying this for a long. The day before yesterday it was a black Monday for Indian markets. We will now assume the short-term bottom at 16410 only once we cross and sustain above 17000 odd levels. Global markets have also started correction after Indian markets.