14 August 2018 (8:59 AM, IST)
As we had written yesterday, Indian stock markets, especially Nifty, traded with choppiness after a gap down opening yesterday.
Today’s pre-opening numbers are showing a bounce back in major Indian indexes but now, day traders should look for resistance from short term Moving Averages on daily- 4-hgours timeframe.
Yesterday’s low points will ow become today’s range support and yesterday’s high point, today’s resistance.
Last week’s range levels will be broader range levels for major Indian indexes today..
This will create a rangebound trend and traders should see to buy and sell with these levels. Buy at low, sell at high. RSI can help in deciding these trades as overbought and oversold conditions will help in determining short or long traders in different timeframes. For example, for scalpers, RSI in one minute chart is good enough for trading. For long term traders, the signals will not change so abruptly.
Fibonacci levels will be more helpful in such reversal and bounce conditions instead of intraday pivot. So take help of those levels and trade with the short term trend, which can remain volatile and sideways.
Rupee’s intraday trend can also add to the volatility. After falling to 70 against USD, the Indian currency is showing signs of stabilizing below that level. Support to rupee can support Bank Nifty or a fall in this currency can lead to a fall in Bank Nifty too.