5 May 2017 (8:31 AM IST)
SGX Nifty is trading low on global cues, so Indian markets may see a weak opening today. But the overall trend will depend on how NSE Nifty trades after the opening bell.
In Indian markets, Bank Nifty had a great rally yesterday on some government steps to tackle bad loans of banking sector. Nifty also saw some gains but refused to cross above tis current range top.
As we have been continuously writing, Bank Nifty is in a clear uptrend but Nifty spends most of its time being range bound in an uptrend. That is, this index takes time in breaking out of any resistance and advances much slowly than Bank Nifty.
Yesterday also, Nifty remained range bound and stayed below its current major resistance of 9,375. That makes Nifty range bound within a small range between this resistance and support of 9,300.
If this index and broader Indian markets open lower as SGX Nifty, then we’ll either see a range bound session (where markets will bounce back from support levels and trade within yesterday’s low and high levels) or a negative session where markets will continue to trade lower even after a negative opening.
For intra day trading, Nifty has pivot at 9,349. Above this level, resistance will come near 9375 (strong resistance) – 9392 or 9418.
Below the pivot, support comes for Nifty near levels of 9333- 9307 (strong support) or 9291.
In case markets open lower, wait for some time to see which way the trend develops, then trade accordingly.
Good luck, enjoy the session!