8 January 2018 (7:48 AM IST)
- SGX Nifty indicating a gap up opening in Indian stock markets.
- Could it be a start of pre budget rally in Nifty?
- Read what has been previous trend in Nifty.
- What are Nifty’s short term and long term targets?
SGX Nifty is trading today with nearly 50 points’ gain and if Nifty also follows this uptrend, then this index and broader India stock markets will enjoy a gap up opening today and the intraday trend may remain positive.
In that case, it could be a start of pre budget rally in Nifty as the index had closed above its strong, rang resistance of 10,550 on Friday.
Bank Nifty had also jumped up near the closing minutes and had closed above 25,700, above its own resistance of 25,550.
Nifty has been coming back after a bounce from its range support levels and if the index stages a gap up opening today, that would mean confirmation of a range break and that can trigger another stage in its uptrend.
If that happens, then based on Fibonacci levels, Nifty’s next target will be near 10,632. Above that level, Nifty’s other long term targets will be 10,680 and 10,732. But these are long term targets and will depend whether the index rallies ahead from current levels.
Bank Nifty bounce back from its Moving Average support last Friday and after 6 sessions, closed above its strong resistance of 25,550. Bank Nifty has been (and still is) in a broad range and this range will be breached only if and when this banking sector index starts trading above 26,000.
Focusing on intraday trading in Nifty, the index will have pivot point at 10,548. If Nifty trades above this level, then it will show buying support in the index and it can try to reach higher targets of 10,576-10,594 or 10,622 which will also mark as its intraday resistance levels. Support levels will be near 10,530 -10,502-10,484.
Intraday trading system is mostly based on daily pivot level. You can find these important pivot levels for Indian indexes on our pivot trading page.
Or, you can check those levels right here:
Remember, if you want to earn a living by day trading, then observing how stock markets trade near support and resistance levels should be an important tool in your day trading system. Observe market movement near these level, what for the right trade entry point, then use follow the trend. This trend can be turning higher (bouncing back from support levels) or turning lower (reversing from resistance levels).
This was our analysis of Indian stock markets from previous session.