12 January 2018 (8:36 AM IST)
- SGX Nifty is trading with big gains, indicating a positive opening in Indian stock markets today.
- Even a small gap up opening will take Nifty above its current range and reach new high.
- Both Nifty and Bank Nifty found strong support near day’s low levels yesterday, which is a positive indication for these indexes.
- Nifty IT has been in a strong uptrend.
Indian stock markets are expected to open with positive numbers, as indicated by higher trend in SGX Nifty today. Nifty had turned strictly range bound in last few sessions and a gap up opening will help this index stage a breakout from that range. Nifty has been finding strong buying support near 10,580- 10,600 levels in these sessions, establishing this as a range support zone.
Bank Nifty also found similar strong buying support near its own support level of 25,520, making it a new range support. Nifty has been in an uptrend, but Bank Nifty has been strictly range bound and showing weakness. This new found support in Bank Nifty may help Nifty and broader markets in going forward.
Nifty IT index has been continuously rallying in recent session. The index has had two big breakouts in last 3 weeks and is expected to continue rallying forward. Although yesterday’s chart are showing a top hammer which can indicate a small correction ahead due to profit booking. If Nifty IT can trade above its previous high mark, then the rally will continue.
For intraday trading in Nifty, its pivot mark will be at 10,642. Resistance is expected near higher levels of 10,673-10,694 and 10,725. Support is expected near lower levels of 10,620 -10,590 and 10,568.
For intraday trading, here are major support and resistance levels (pivot levels) for Indian indexes:
Day traders can take help of these level to plan their trade entry and trade exit levels for day trading in Nifty and other stock indexes.
Last sessions’ technical trend analysis in Indian stock markets