On Friday Indian markets were very weak and closed at 17026 which is -509 points. On Friday bank nifty was weak and closed at 36025 which is -1339 points.
The US market worked half day on Friday. On Friday the US market was weak due to the new Covid variant but on Friday Dow Jones closed negative by -905 points (-2.53%). IT index i.e. Nasdaq was also weak and closed -353 points (-2.23%).
Following are the supports and resistance for two major indexes of INDIA.
- Nifty support – 16900-16975 & 16625-16700
- Nifty resistance – 17150-17200 & 17300-17350
- Bank nifty support – 35850-36000 & 35600-35700
- Bank nifty resistance – 36500-36650 & 36850-37125
On Friday (Foreign institutional investors) FII were net Sellers and have sold 5786 crores in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 2294 crore in the cash market.
The way FII’s are selling since last month we can assume that they were aware of this 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.