Last Week Of The Year- Here Is Why FII Selling Needs To Be Reduced

Today morning both major US index futures are Flat by -3 and -5 points respectively hence Singapore nifty (SGX NIFTY) trading flat by +10 points hence will be opening flat on Indian Markets.

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Yesterday Indian markets were flat to weak and closed in the red. Nifty closed at 17213 which is-20 points. Yesterday bank nifty was also weak and closed at 35045 which is-138 points.

Yesterday US market was positive and closed in green at all-time high levels. Dow was +90 points (+0.25%). IT index i.e. Nasdaq was Negative and closed -15 points (+0.098%).

Following are the supports and resistance for two major indexes of INDIA.

  • Nifty support – 17120-17160 & 17025-17085
  • Nifty resistance – 17250-17300 & 17325-17400
  • Bank nifty support – 34850-34900 & 34400 – 34600
  • Bank nifty resistance – 35200-35350 & 35475-35625

Yesterday (Foreign institutional investors) FII were net Sellers and have sold975 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1006 crore in the cash market.

Also Read : Last Week Of The Year- Wednesday Stock Markets Update

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.