Yesterday Indian markets open flat and traded in a very small range, made an all-time high on a closing basis at 16636 which was just 2 points up. Yesterday Bank nifty was stuck into a congestion zone of 35600-35800. This bank nifty range was support when it was trading higher and after breakdown, this support is acting as resistance, yesterday bank nifty attempted to clear this level but was not able to break due to the monthly expiry of the Aug series.
The US market yesterday corrected from the upper side before the big event to happen today and closed positive by -192 points (-0.54%). IT index i.e. Nasdaq was also corrected after making an all-time high and closed by -96 points (-0.64%).
Following are the supports and resistance for two major indexes of INDIA.
Nifty support – 16565-16590 & 16500-16530
Nifty resistance – 16675-16725 & 16775-16800
Bank nifty support – 35300-35425 & 35025-35125
Bank nifty resistance – 35800-35900 & 36000-36200
On Friday (Foreign institutional investors) FII were net sellers and have sold 1974 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Sellers and have sold around 1055 crore in the cash market.
A big event to happen today night in the US before that US market is stuck into range. A tapper by the FED chairman is expected in the event which will be negative for the US market and eventually for India as well. One should not carry any trades overnight as a big move on any side can happen in the US which can affect a big Gap up or gap down.