23 January 2018 (7:46 AM IST)
SGX Nifty has lost nearly half of its earlier gains, and Indian stock market charts are flashing some serious warning signals. So, day traders should become cautious now because these markets can turn volatile at current high levels.
The RSI indicator in technical charts of major Indian indexes, has crossed over 90% which shows extremely overbought conditions and it should make day traders really cautious about their long trades.
The market trend in Indian stocks has been steeply higher in recent few sessions. Day trading is all about following the trend so as long as the trend is up, day traders should continue to follow that trend, but avoid takin long positions and look for short term profit booking at this stage.
For intraday trading, take help of support and resistance levels of major Indian indexes even on our pivot trading page.
For intraday trading in Nifty, pivot mark will be at 10,940. Above this mark, resistance is expected near 11,000-11,034-11,094 and support is expected near lower levels of 10,906-10,847-10,813.
Bank Nifty has been in a store uptrend since it broke out of its range a few days ago. That trend may continue till the index reaches its important resistance levels. Check those levels on our pivot trading page or here:
This is how Indian stock markets were preparing for their previous intraday trading session: