3 August 2017 (8:24 AM IST)
SGX Nifty is trading negative, indicating a weak opening in India markets today. These markets have been a marathon rally since last six months and are now at overbought levels, waiting for some correction to take place.
Yesterday, major indexes fell after much anticipated rate cuts by the RBI because of hawkish tone of the central bank’s policy statement. Anyway, the rate cut had been priced-in by markets and profit booking was expected after the central bank’s policy declaration.
Today, Bank Nifty will have its weekly Options expiry session so the index can remain choppy and keep overall markets volatile.
On technical charts, Nifty and Bank Nifty made a bearish candlestick and yesterday’s high levels create major resistance for these indexes.
The overall trend is still up and markets may see either a range bound session (within previous session’s high and low levels), or continue with the lower trend of yesterday’s closing hours, in which case weekly support/ resistance levels will create the overall trading range.
Nifty has its pivot at 10,091. Below this mark, support comes near 10,044- 10,007-9,960 levels while resistance levels will be near 10,128-10,174-10,211.
Watch these levels and trade with the short term trend.
Good luck, enjoy the session!