7 February 2019 (8:58 am IST)
Although Indian stock markets continued to climb yesterday and Nifty closed above 11,000, we will repeat the advise for small traders that we gave yesterday.
That is, be careful and wait for Nifty to strongly breakout of this range top level. Otherwise, the index and broader Indian markets can reverse their trend from the current levels.
Day traders should wait and watch how major indexes behave near their intraday support and resistance levels. We have given these levels on our Pivot Trading page. For major indexes, these pivot levels are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Expect Indian stock markets to trade with choppiness and trade within major support and resistance levels.
Watch 5-hour charts of major indexes for trend indicating. If these indexes continue to rise above previous candlestick, then the trend will be upbeat and positive.
However, a negative candlestick on 5-hour charts can indicate a trend reversal. Then take help of 1-hour candlestick to see if support is coming or the price continues to decline, creating a “lower high”, in which case it will indicate a trend reversal.
Market volatility may remain high, which is usual when markets reach any significant support or resistance level.