Indian Stock Market would open gap negative. Market would consolidate in a range bound region for now.
Indian Stock Market has entered into very short term positive trend and now we could see further short covering. For now, traders should buy on dips with strict stop loss of 16200 levels for Bank Nifty and 7553 levels for Nifty and should reverse their positions once these levels are breached on closing basis.
This current uptrend is not convincing and may end up with a big downfall in upcoming days. Even in last two days of sharp bounce back rally, FIIs were the sellers, which is a warning of further downfall in upcoming weeks.
FIIs were net sellers of Rs.452.13 crores whereas DIIs were net buyers of Rs.1194.58 crores in last trading session.
Nifty would see strong support at 7750-7665-7553-7500 whereas strong resistance would be seen at 7880-7910-8000-8060 levels.
NSE Nifty: (7819) The support for the Nifty is 7750-7665-7553-7500 and the resistance to the up move is at 7880-7910-8000-8060 levels.
NSE BankNifty: (16632) The support for BankNifty is at 16300-16200-15950-15800 and the resistance to the up move is at 16780-16911-17060 levels.
BSE Sensex: (25716) The support for the Sensex is at 25500-25395-25232-25020 and the resistance to the up move is at 25880-26011-26150 levels.