25 October 2017 (8:32 AM IST)
Like U.S. markets, India markets are also set to open with big gains of hopes of a mega recapitalization scheme of PSU banks.
Hopes, because the Government is yet to decide the nature of bonds that will fuel much of this ambitious recap plan.
There is no clarity when the scheme will start or how it will be implemented. So ,basically this plan is just a bundle of promises and markets are set to open with a big gap on these promises.
Interestingly, Indian rupee had dropped sharply yesterday after the Indian Finance Minister declared his plans but failed to answer when the scheme will start.
However, SGX Nifty rallied with U.S. markets and today, this Nifty futures index is trading more than 100 points higher, indicating a higher opening for Nifty and broader India markets.
It remains to be seen, how major indexes trade after a highly positive opening. The trend could go in two directions- either continue to climb further, or turn lower and trade in a sideways pattern.
Nifty’s intra day pivot is at 10209. Support levels are near 10180-10153-10125 marks and resistance is expected near higher levels of 10236-10264-10291.
Wait for the opening bell, let markets stabilize a bit, then trade with the short term trend.