19 January 2018 (8:22 AM IST)
Today’s intraday trend in Indian stock markets can be highly volatile and speculators may continue to move these markets at their whim. Many important companies will be reporting their quarterly earnings, including 5-6 Nifty companies, with big names like Reliance Industries, HDFC Bank, ITC etc which can keep Nifty and other major indexes highly volatile.
SGX Nifty is indicating a positive opening for Nifty and broader stock markets. But the closing can be in any direct- up, down or flat.
Yesterday, we had warned day traders in Indian stocks that a big gap up opening can finish with lower closing. That is exactly, how Nifty needed its previous session.
It was also Bank Nifty’s weekly Options expiration day, and speculators were out in full force, taking the banking index up by 500+ points on the back of only 4 banking stocks, thus hitting all those call sellers who had positions between 26,500- 26,800. The biggest PSU bank, SBI (State Bank of India) traded and closed negative yesterday but what a surprise, Bank Nifty traded and closed positive!
So, day traders in Indian stock markets should always be careful about such speculative moves and trade strictly with the market trend. You may not know what is happening behind the scene but charts will always tell you correctly which way the trend is going and day traders should blindly follow the trend, forgetting everything else.
For intraday trading in Nifty, today’s pivot level will be at 10,828. Resistance is expected near higher levels of 10,875-10,934-10,980 and support may come near lower levels of 10,770-10,723-10,665.
Watch these Nifty levels, watch how the index trades near these levels and follow its trend for day trading.
You can check pivot levels of major Indian indexes on our pivot trading page, or here:
Here is what we had warned day traders about intraday trend in Indian stock markets yesterday.