Yesterday Indian markets have shown strength and do not correct more as compared to global markets. Nifty after breakout closed positive at 17991 which is +46 points. Yesterday bank nifty has shown more strength than Nifty and has closed at 38521 which is +227 points.
The US market yesterday was flat in the 1st half but closed in the red. Dow Jones yesterday closed negative by -117 points (-0.34%). IT index i.e. Nasdaq was also strong but closed -20 points (-0.14%).
Following are the supports and resistance for two major indexes of INDIA.
Nifty support – 17900-17940 & 17800-17850
Nifty resistance – 18040-18090 & 18140-18190
Bank nifty support – 38175-38350 & 37925-38125
Bank nifty resistance – 38600-38750 & 38800-38950
Yesterday (Foreign institutional investors) FII were net Sellers and have sold 278 crores in the cash market. On the other hand (Domestic institutional investors) DII were net Sellers and have sold 741 crores in the cash market.
The global markets have corrected from day high yesterday was due to evergrande as markets were expecting that there will be no default in interest payment but evergrande have failed to pay the interest. The other thing to worry about is global inflation all over the world. The prices of the commodity are rising in an unbelievable way which is a big reason to worry for markets and hence if the market corrects anytime then the reason will be just the prices of the commodity.