Markets Update In The First Week Of The New Year

Today morning both major US index futures are Positive by +125 and +90 points respectively hence Singapore nifty (SGX NIFTY) is trading flat to negative by -24 points hence will be opening flat on Indian Markets.

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On Friday Indian markets were strong and closed in green. Nifty closed at 17354 which is+150 points. On Friday bank nifty was also strong and closed at 35481 which is+418 points.

On Friday US market was positive in 1st half but closed in the red. Dow was -59 points (-0.16%). IT index i.e. Nasdaq was Negative and closed -96 points (-0.61%).

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

  • Nifty support – 17235-17275 & 17150-17200
  • Nifty resistance – 17400-17475 & 17525-17600
  • Bank nifty support – 35200-35350 & 35050 – 35125
  • Bank nifty resistance – 35700-35850 & 35900-36050

Yesterday (Foreign institutional investors) FII were net Buyers and have Bought575 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1165 crore in the cash market.

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

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.

January month is normally known as a pre-budget month and big moves are possible on any side. We will keep watch on data of FII’s whether they start buying or continue with their selling. They have bought it on 31st December but we need to wait and watch for some more days if they buy further or again start selling.