24 January 2020 (8:18 am IST)
After falling for three days, Indian stock markets had a positive closing yesterday. It was also the weekly Options’ expiry session for Nifty and Bank Nifty so we’ll have to wait for another positive closing to ascertain that these markets are now changing their trend from support levels.
Nifty is trading above the 20-Day Moving Average on both 15-minutes and hourly charts which is a strong positive signal. Day traders who want to short-sell this index should keep this factor in mind.
Yesterday, Nifty had shown strong support after the initial fall. That means, if you draw a trend line in the closing session of Nifty, it will indicate an uptrend now, instead of a downtrend. If Nifty falls and breaks this trend line then it will be back in the negative area, but if the index takes support from the trend line and rise, then it would be in the previous uptrend. See, day trading is so simple! Just follow the trend.
Overall, Indian stock markets and its major indexes are within a broad range and yesterdays rise from support has made them range-bound.
For range-bound markets, we have provided daily pivot levels on our Pivot Trading page. These are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Expect Indian stock markets to trade with high volatility. If yesterday’s support continues then these markets will stage a trend reversal and start rising again. If not, then the previous downtrend will continue.