Stock Market Update Post Diwali Week

Today morning both major US index futures are flat with -25 and -65 points respectively and hence Singapore nifty (SGX NIFTY) trading positive by +55 points hence will be opening gap up on Indian Stock Markets.

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On Thursday on Diwali there was a Muharat trading which happens every year where Indian markets are open for 1 hr. from 6.15 PM to 7.15 PM. Indian markets have shown strength on Thursday and closed positive at 17916 which is +88 points. On Thursday bank nifty was strong and closed positive at 39573 which is +171 points.

The US market is celebrating Diwali in true sense. Dow Jones is super positive and has made all-time high levels on Friday. Dow Jones on Friday closed positive by ++203 points (+0.56%). IT index i.e. Nasdaq was also positive and closed +31 points (+0.20%).

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

Nifty support – 17800-17850 & 17700-17750

Nifty resistance – 17975-18025 & 18100-18175

Bank nifty support – 39300-39400 & 39000-39125

Bank nifty resistance – 39750-39850 & 39950-40150

On Wednesday (Foreign institutional investors) FII were net Sellers and have sold400 crore in cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought196 crore in cash market.

The Global markets are positive and trading at all time high levels but still Indian markets have not recovered yet. It is the time wise correction which is happening in Indian markets. Investors can start investing now. I still don’t think that this Bull Run has end. This can be seen as running correction and we can again make all-time highs in short term.

In US Fed have started tapering where FED will reduce bond buying program where FED now will buy $15 Billion bonds from $120 Billion bonds. The Interest rates are still near 0% and reduction of bond buying program was known by the US markets and hence US markets are making all-time high levels.