28 July 2017 (8:12 AM IST)
The uptrend in Indian markets suffered a setback yesterday when three big companies from different sectors; Idea (telecom), Maruti (auto) and ICICI bank (top most private sector bank), reported disappointing results.
Nifty suffered a drop of nearly 100 points from day’s high level and closed negative after a rally in the opening session. On technical charts, this trading pattern has made a big, negative “top Hammer” which indicates a trend reversal. Indian markets had already been trading in overbought conditions and now, as global cues turn negative, these markets could see a correction from current levels.
SGX Nifty is down by nearly -70 points at the time of writing and facing resistance at 10,000 mark. Nifty is expected to open near 9,950 level today. After that, traders should watch and wait for any bounce back and start trading only after markets become stable.
Nifty has intra day pivot at 10,046. Support levels come below this mark, near 9,979- 9,937 and 9,869. If Nifty opens below any of these levels, then that levels could act as an immediate resistance. Other resistance levels are 10,088- 10,156 and 10,197.
Watch these levels and follow the short term trend. Markets may remain choppy on global cues.
Good luck, enjoy the session!