As we begin a fresh new day, the cues we are getting from the US markets are weak, with both Dow Jones and S&P 500 down.

After witnessing a stellar rally last week and a holiday on Monday, the US markets have made a comeback, but on the negative side. Asian markets are also lower as Wall Street has a seen a cool off in its rally. Hang Seng is down 1.5 percent, we have the Taiwanese index lower as well. Most of the Asian markets are lower in trade today.

The SGX Nifty too is indicating a start in the red for our own markets right now. It is indicating a cut of around 20 points now for our own markets.

For our own markets, Tuesday was a stellar rally from the lows, especially in the second half recovery which helped Nifty close at the day. The high midcap index continues to outperform as it ended at a record high for the second-straight session. IT stocks and Reliance Industries led to the Nifty gains on Tuesday.

Now, the Nifty resistance is seen at 18,850 to 18,900 and support for the Nifty is seen at 18,700. Even Nifty Bank recovered 421 points from the lows to 43,767. Now, Nifty Bank’s 20-day moving average is at 43,967 is the immediate resistance. This will be an important level to watch out for as well.

In terms of fund flows, domestic institutional investors (DIIs) net bought Rs 19072 crore, while foreign institutional investors (FIIs) sold the same amount in cash markets. So there is some selling, which has come by some profit taking, maybe after the run that we’ve seen very close to record high levels. But, we’ll have to see it looks like it could be another day in seeing some dips.

Tune in to the Marketbuzz Podcast for more cues and news ahead of today’s session