Indian Stock Markets Today: Choppy, Range Bound Trend on Weak Bank Nifty

16 February 2018 (8:08 AM IST)

Although SGX Nifty is trading with healthy gains inn early session; Indian stock markets will continue to trade range bound on weakness in Bank Nifty.

This week, Nifty and broader Indian stock markets have been trading range bound as a nearly $2 billion scam in public sector bank, PNB (Punjab National Bank) has kept Bank Nifty under pressure. It seems that this scam was spreads to other banks also and that may keep the banking sector index volatile.

On technical charts, Nifty is comfortably range bound between its 50 Day and 100 Day Moving Averages. But Bank Nifty has been trading precariously close to its major support of 100-Day MA and if the index falls, and stays below this support (25,300) at any time, then that will be a negative trigger for the index.

Overall, a range bound trend is dominating Indian stock markets currently. That means markets will bounce between support and resistance levels till any of these levels are breached and then a trend will start. It remains to be seen, when that will happen and what kind of trend will develop in Indian stock markets.

Till that happens, day traders should continue to use pivot trading as the best day trading strategy. It will mean using support and resistance levels for trade entry and profit bookings.

For Nifty, intraday pivot mark will be at 10,558. Support is expected near lower levels of 10,498- 10,451-10,391 and resistance could come near 10,605-10,665- 10,712 mark. In the previous session, Nifty had traded between a high mark of 10,618 and low mark of 10,511. That range will work as Nifty’s immediate trading range today also.

You can check these pivot levels of major Indian stock indexes on our pivot trading page, or here:

Trend analysis of world stock markets today:

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