21 December 2017 (8:28 AM IST)
SGX Nifty is nearly -10 points down in early trading, indicating that intraday trading in India stock markets may remain choppy and rangebound.
This choppiness was evident in yesterday’s day trading pattern. These markets declined at open, then recovered to turn sideways and then had a sudden drop in closing hours.
Nifty faces stiff resistance near 10,500 and Bank Nifty sees selling near 25,700 mark. Nifty has been showing eagerness to climb up but Bank Nifty is showing weakness and is volatile due to rising non-performing assets (NPAs) in the banking sector. One of the major banks, the Bank Of India (BoI) has come under the Reserve Bank of India’s prompt corrective action’ (PCA) which will restrict the bank from issuing new loans and dividends.
For daytrading, Nifty’s intraday pivot will be at 10,458. The index is expected to face resistance near 10,480-10,515-10,537 and support comes near 10,422-10,401-10,365 levels. Check pivot levels of major India stock indexes here.
Watch these levels and trade with the short term trend, which may remain range bound and highly volatile. If Nifty starts trading above 10,500 then it will be a bullish signal and below 10,400, the index may face selling pressure.