27 Aug, 2014 (9:00AM IST)
Day traders in Indian stock markets had excellent intra-day trading opportunity in Nifty yesterday, in both directions. At least for those who were careful enough to time their trades on support and resistance levels.
Nifty’s current range has become 7,950- 7,850. Yesterday, the index gave good opportunity to sell at high (7,914) and buy at low ( 7,865).
Tomorrow happens to be the F&O expiration session and markets will be closed on Friday for a long weekend. That makes today’s session even more volatile.
SGX Nifty is showing inherent weakness as yesterday, there was a big gap down drop during the second half of the session in this index. That showed some big position holder dumped huge lot of shares at cheap price. Such big, sudden movements are indicative of nervousness or running away from long positions.
Even though SGX Nifty is trading quite high today, it will trade within this week’s range of high and low and Nifty is expected to do the same.
So watch the resistance levels in the first half of today’s session, and watch rupee’s trading pattern. Indian markets are trading as per USD/INR currency pair trades (watch live charts of USD/INR here).
If rupee gains then Indian markets will also gain- but only up to certain levels. Global cues will be more dominating than anything else. European markets might decide the trading pattern in second half of today’s session.
Trade carefully, Good luck.
See you later!