5 August 2019 (9: 22 am IST)
Befoe the opening bell in Indian stock markets, SGX Nifty had fallen by 80 points with negative global and local cues. This indicated that the current strong downtrend will continue in Indian stock markets. True to that Indian stock markets have opened with deep cuts with other stock markets.
Going by the last week’s closing session, Indian stock markets were expected to trade in a rangebound manner within their current downtrend and the trend was expected to be volatile till the RBI’s policy announcement on Wednesday.
But negative global cues and a tense situation in Kashmir has put the pressure back on these markets.
For Indian stock markets, local cues are strongly negative. The Indian economy is in shambles and Foreign Portfolio Investors (FPIs) are running away from these markets after a higher tax was introduced in the Budget.
Today, the Indian Finance Minister Nirmala Sitharaman will hold meeting with Public & Private sector banking heads to review the flow of credit to important sectors of the economy.
That and expected rate cut from the RBI could create a volatile intraday trend in Indian stocks. However, global cues are dominating the trend today and those cues are highly negative at this hour.
To know intraday range levels of major indexes, check our Pivot Trading page. These separate levels are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
A gap down opening will take Nifty close to its previous low mark. From there, Nifty will either find support and become rangebound or face a renewed selling pressure and resume its strong downtrend.