18 October 2017 (8:44 AM IST)
As we had been writing for a couple of month, India markets are trading within a broad range and this week, Nifty staged a breakout of that range to make new historic highs.
But, with that jump, Nifty also entered oversold zone on technical charts and considering that Bank Nifty has been showing weakness, it was obvious that Nifty will face a correction soon.
SGX Nifty is down by -34 points in early trade, indicating a lower opening in India markets.
Bank Nifty will have its weekly Options expiration today as these markets will be closed for Diwali celebration in next two sessions and will open only on Monday.
Such a long weekend, technical cues and volatile global trend may trigger some profit booking in India markets today.
So we have two possible trends for these markets- a sideways pattern where markets will trade within previous range; or a negative trend. India markets are highly speculative in nature so it will be prudent to remain cautious about a third possibility, that of positive trend too.
Nifty has intra day pivot at 10232, Support comes below this mark, near levels of 10214-10193-10174 and resistance is expected near 10253-10272-10292.
Watch these levels and trade with the short term trend.
Good luck, enjoy the session!