Stock Markets Update- One Needs To Be Cautious While Buying On Higher Levels

Today morning both major US index futures are negative by -60 and -70 points respectively and Singapore nifty (SGX NIFTY) is trading Negative by -70 points hence will be an opening gap down on Indian Markets.


On Friday Indian markets were strong and hence closed flat. Nifty closed at 18255 which is -2 points. On Friday bank nifty was weak and closed at 38370 which is -99 points.

On Friday US market was mixed where Dow was Weak and closed in the red. Dow was -201 points (-0.56%). IT index i.e. Nasdaq was strong and closed +86 points (-0.59%).

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

  • Nifty support – 18125-18175 & 18000-18050
  • Nifty resistance – 18250-18275 & 18300-18375
  • Bank nifty support – 38025-38150 & 37750 – 37925
  • Bank nifty resistance – 38475-38600 & 38725-38950

Yesterday (Foreign institutional investors) FII were net Sellers and have sold 1598 crore in the cash market. On the other hand (Domestic institutional investors) DII were net Buyers and have bought 371 crores in the cash market.

We can say that market has made a short-term bottom of 16410. Now we need FII’s buying before budget so that we can reach all-time high levels.

Also Read : Stock Markets Update- Here’s Why It Is Important To Wait And Watch

January month is normally known as a pre-budget month and big moves are possible on any side. We will keep watch on data of FII’s whether they start buying or continue with their selling.

FII’s have sold for the last five days and markets are running very fast upwards. This means retail traders are buying heavily in the markets. Now we need to watch if FII’s start heavy buying on the higher side of the market or they will sell more and let markets come down. We think that now 18000 will be a crucial level for retail traders and if we sustain above this level then retail traders will force FII’s to buy on higher levels. We will be looking at both indices on a closing basis.

FII’s have sold for 4-5 days but still, we came up near 18250. We need to wait and watch and be cautious while buying on higher levels. It is a buy on the dip market and hence we need to Waite for the dip to buy so that the risk-reward ratio matches.