Global Markets closed in deep green with Nasdaq and DowJones up 1-2%.
Trading Setup for Nifty50
Nifty 50 remained very volatile during yesterday’s sessions. Though Nifty opened with a huge gap up of around 2.5%, we saw a good profit booking at 10000 odd levels.
Volatility further increased due to tensions between China and India. Nifty50 shredded 250 points intraday in less than 1 hour. The index also quickly rebounded 200 points from lows as it took support at 9720 levels.
We have seen good buying in selected midcaps and small caps related to the agriculture industry.
Stocks like KSCL, GodrejAgro were up more than 7% and have seen a significant increase in volumes.
Support for Nifty50: 9800, 9720, 9630
Resistance fro Nifty50: 9950, 10040, 100150
Technical Setup for BankNifty
We saw mixed sentiments among banks yesterday. Private banks like HDFC Bank, Kotak were supporting Index. Public sector banks SBI, Bank of Baroda remained weak during the day.
Support for BankNifty: 20070, 19930, 19530, 19300
Resistance for BankNifty: 20630, 20500, 20970
FIIs Position
FIIs have again sold heavily in cash markets with amount aggregating to 1478 crores. They have covered their short position but continued to hold shorts on Index.
Today’s session will be very volatile due to further escalation of India-China border issues. We also have Supreme Court hearing on moratorium offered by banks.
