26 December 2017 (Update):
Thanks to one businessman, Mr Anil Ambani, Indian stock markets rallied just before the closing bell. BSE sensex closed at record high; above 34,000 for the first time. NSE Nifty also dashed about 10,500 staging a positive breakout.
Mr. Ambani announced in a press conference that his company, Reliance Communications has undergone a debt-restructuring and will see a debt reduction up to 25,000 crores by selling some assets.
This news was greeted with enthusiasm by markets. Reliance Communications Ltd (RLCM) shares zoomed and closed with more than 30% gains.
Banking sector also improved but Bank Nifty stayed below its current resistance of 25,700.
It will be interesting to see if this rally holds tomorrow or in weeks to come, but today’s closing in Indian stock markets has come as a boon to day traders in Nifty who are bullish on this index and are looking forward to make more profits in an uptrend in forthcoming sessions.
Earlier (8:33 AM IST)
A lower SGX Nifty is indicating negative opening in Nifty and broader Indian stock markets. As we had previously discussed in our Indian stock market trend analysis, Bank Nifty is showing weakness and is keeping Nifty’s trend range bound. Last week, Nifty had closed near its range top and had faces major resistance near 10,500 and a negative opening will mean, Nifty will continue to trade sideways and 10,500 will continue to be its strong resistance, at least for the time being.
A range bound market means day trading strategy should focus on pivot levels. In such conditions day traders trade stocks or indexes based on their behavior near support and resistance levels. You can find these important levels on our pivot trading page, or check here fo:
In any range bound market both resistance and support levels are important. So, after the opening, watch how Nifty behaves near its important support levels. Can it bounce back from those levels? If it does, then Nifty trend will remain sideways. If it continues to fall below important support levels, then it may trade negative today.
Watch how Nifty and borders Indian stock markets trade today, then follow the short term trend.
Good luck, enjoy the session!