15 January 2018 (8:06 AM IST)
Although SGX Nifty is trading with +38 points gain, the charts of SGX Nifty are showing worrisome signs.
Similarly, Nifty charts and other technical charts of major Indian indexes have developed a signal that can either turn into a bearish trend reversal or, a bullish trend continuation.
Today’s closing will clear which of these two possibilities will dominate the day trading trend in Indian stock markets now.
Last Friday, Indian stock saw a highly volatile day trading pattern. Markets opened high, then dropped with big numbers on news reports of 4 sitting Supreme Court judged revolting against the Chief Justice of Indian.
After the slide, came a reversal and Indian markets again climbed back to close near days opening levels. This made a “hanging man” candlestick pattern in Nifty’s chart as well as in other indexes. In technical analysis, this candlestick pattern can go either way; a bearish trend reversal if made at the top after an uptrend, or a continuation of that uptrend.
A similar candlestick pattern can be observed in other major indexes; Bank Nifty and Sensex.
However, Nifty IT is on a different track and had taken a breather in its uptrend (just as we had reminded readers, that a pause was ahead for this Indian tech index). Nifty IT is on a strong uptrend and trading differently from other major indexes.
Bank Nifty is still range bound and still faces a major resistance zone between 25,750- 25,850.
Going by Nifty chart technical analysis, the index faces a risk of “opening high, but closing lower that opening levels.” Please remembers, it is just a possibility. The other day trend possibility for Nifty will be, it opens high and continues to trade higher.
Where will Nifty face support and resistance today? That is easy to predict with the help of pivot levels.
For day trading in Nifty, intraday pivot will be at 10,656. The index can face resistance near higher levels of 10,715-10,749-10,808, and support is expected near levels of 10,622 -10,592-10,528.
You can find today’s support and resistance levels for all major indexes in Indian stock markets on our pivot trading page. Or here are those levels for your conveniece: