8 July 2019 (9:03 am IST)
Last Friday, Indian stock markets had a mixed closing where Bank Nifty closed with slightly positive numbers, but Nifty has fallen down with big margins, and today Indian stock markets have again opened with huge losses in the opening trade.
This indicates the negative trend in Indian stock markets is getting stronger. We had discussed last week how that reading pattern was looking quite suspicious in these markets and it looked like big traders were unwilling to take Nifty higher in spite of gap up openings.
Those suspicions were confirmed last Friday when Nifty went down with highly negative numbers after the Union Budget was presented in the Parliament.
Today, Nifty has already lost nearly a hundred points in the opening trade so day traders should wait and watch markets cautiously at current levels. Such big gap down openings can increase market volatility, so small traders should wait till market stabilize a bit and either pick up the downtrend again or show signs of a bounce back from support levels.
We have provided these daily support and resistance levels on our Pivot Trading page. For major indexes these levels are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Indian stock markets are currently in a short-term downtrend, but still, range-bound near the higher range levels. Nifty still has its range support at 11,600. Only when the index falls below this level, we can assume that the previous breakout has failed and these markets are now back in their yearly trading range.