Yesterday Indian markets open with a gap as we were expecting the same and then traded positive for the whole day, made an all-time high of 16712, and closed at an all-time high on the closing basis at 16634. 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, and hence bank nifty was weak yesterday and closed at 35586 levels.
The US market yesterday consolidated on the upper side again and closed positive by 39 points (+0.11%). IT index i.e. Nasdaq was also positive and made an all-time high and closed by +22 points (+0.15%).
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 – 35700-36800 & 35900-36100
On Friday (Foreign institutional investors) FII were net sellers and have sold 1072 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Sellers and have sold around 151 crores in the cash market.
In the US we can see a rotation where the IT index i.e NASDAQ taking lead and Dow is in the back seat. Yesterday NASDAQ made an all-time high also broader index S&P 500 also made an all-time high yesterday which shows that market will not fall heavily until unless COVID, Delta, Delta+ fear is gone.