Yesterday Indian markets have shown a big rally through and haven a breakout above 18000. Nifty after breakout closed positive at 17945 which is +50 points. Yesterday bank nifty have also given a breakout and closed positive at 38293 which is +518 points.
The US market yesterday was up by 200 points in the 1st half but closed in the red. Dow Jones yesterday closed negative by -250 points (-0.72%). IT index i.e. Nasdaq was also strong but closed -93 points (-0.64%).
Following are the supports and resistance for two major indexes of INDIA.
Nifty support – 17800-17850 & 17700-17750
Nifty resistance – 18000-18040 & 18100-18175
Bank nifty support – 37925-38125 & 37750-37825
Bank nifty resistance – 38375-38500 & 38575-38650
Yesterday (Foreign institutional investors) FII were net Sellers and have sold 1303 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Sellers and have sold373 crore 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.