While i expected a higher correction on indices, it came more on Bank Nifty and less on Nifty . Reliance continued to hold Nifty . Probably because of its AGM this week and also some inside news of a fresh investment.
HDFC Bank and Reliance both seem to be as of now. This maintains a overall texture of the markets. US rally on Friday also support this sentiment.
However, a short position on the by the FII's indicates some more selling may come in before support emerges.
Would this selling continues tomorrow? depends on the global cues as well. Markets are following global cues more than the local macros as of now.
Nifty has support at 10660 and if it falls from there, I feel the lowest this market would see is the earlier resistance of 10400. While the markets are struggling to breach 10800 level convincingly, 11000 seems to be the upper limit if it does so.
Bank Nifty seems to be playing between, 22000 and 23000 as of now, Though i feel if it breaches 22000 then 21800 is the support else we directly see 21100 then. On the upside if it crosses 23000, the 23600 and 24000 are the levels to watch for.
Though we may have to wait for the above levels.