16 March 2018 (7:49 AM IST)
SGX Nifty is down by nearly -40 points on weak global cues at the time of writing. So, obviously, Indian stock markets will also have a lower opening.
Yesterday, major Indian indexes had turned lower from their range-resistance levels. Bank Nifty traded in a very small range since it was weekly Options expiration session for that index and market-manipulators had decided that they will not let Bank Nifty drop below certain level.
Other than that, Nifty and Sensex had a bigger negative range, confirming once again the range bound trading pattern in Indian stock markets and their broader range top.
Today, Major indexes are expected to open near their first support levels in Indian stock markets. In range bound stock markets, pivot trading is always the best trading strategy so day traders should always be aware of pivot support and resistance levels and time their trades new those levels.
For Nifty, intraday pivot will be at 10,375. Its support levels are at 10,301-10,257 and resistance levels come near 10,404-10,449- 10,478. Nifty had made a high and low of 10,420 and 10,346 respectively in the previous session. These levels will mark its immediate trading range. If Nifty falls below its previous low, then it will indicate a negative trend in the index.
Usually, a gap down opening is followed by a bounce back from support levels. If that happens then Nifty’s initial trading range will be between first support (10,301) and pivot mark (10,375).
If the bounce back is not strong and Nifty keeps falling after the opening, then it will trade from opening towards lower support levels.
Today’s second support levels, in all major indexes, will be stronger and if these indexes fall below that support level, then the negative trend will become more pronounced and could take Indian stock markets towards much lower range support levels.
Check intraday pivot levels of major Indian stock indexes on our Pivot Trading page. Or, check here:
- Intraday trading levels for Bank Nifty
- Intraday trading levels for Nifty
- Intraday trading levels for Nifty IT
- Intraday trading levels for Sensex