Stock Market Update For Trading On Tuesday

Today morning both major US index futures are flat by +50 and +15 points respectively hence Singapore nifty (SGX NIFTY) trading Positive by -165 points hence will be opening gap down on Indian Markets.

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Yesterday Indian markets were negative and Nifty closed at 17368 which is-143 points. Yesterday bank nifty was Negative and closed at 36925 which is -180 points.

Yesterday the US market was Negative and closed in the red. Dow was -320 points (-0.89%). IT index i.e. Nasdaq was also weak and closed -217 points (+1.39%).

Following are the supports and resistance for two major indexes of INDIA.

  • Nifty support – 17250-17300 & 17150-17200
  • Nifty resistance – 17350-17425 & 17475-17525
  • Bank nifty support – 36525-36625 & 36200-36375
  • Bank nifty resistance – 37100-37275 & 37375-37525

Yesterday (Foreign institutional investors) FII were net Sellers and have sold 2743 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 1351 crore in the cash market.

The way FII’s are selling since last month we can assume that they were aware of the new variant and hence they booked their portfolio on higher levels.

Also read : FII’s Selling Is Something To Worry For Indian Stock Markets

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.

I haven’t been changing the above lines for a long time and the only reason is FII’s because they have been selling for a long time and there is no single day when they have purchased in the cash market. This selling needs to be reduced/stop sooner if we need to hold a big level and recent low of 16780 levels. If this selling increases further we will move below 16780 which will be very difficult for Indian markets.

I am still with the above statements as FII’s are still selling in the markets. The 2nd half of December can be seen as dry with volumes as many big institutions will not be dealing in markets as it’s a year-end for FII’s.