2 August 2019 (8:50 am IST)
Yesterday, Indian stock markets had a marvelous recovery in the closing hours, raising suspicions that perhaps markets had some inside information about RBI’s rate policy which will come next week.
In US session too, SGX Nifty had started climbing and had crossed above its 20-Day Moving Average in hourly charts, which was a confirmation of short term trend reversal.
But then US stock markets crashed on renewed fears of the US-China trade war and SGX Nifty also tumbled down.
Today, this futures index of Nifty is down by 70 points and Indian stock markets are expected to open with similar deep cuts on global fears.
That will make these markets rangebound within yesterday’s high and low levels. Day traders should now cautiously watch for support like yesterday and resistance like days before that.se levels are given on our Pivot Trading page and are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
The overall trend is still negative in Indian stock markets. However, after yesterday’s closing recovery, we need to watch how big traders are trading and that will show on technical charts. If markets fall below the previous low mark, then the downtrend will continue.
If markets stay above that mark and turn rangebound after the negative opening, then day traders should remain alert about a support building in these markets now, till the RBI’s policy meeting next Wednesday (August 07).