27 December 2017 (8:38 AM IST)
Stock trading was quite volatile in Indian stock markets yesterday.
Nifty’s trend changed into an uptrend after a positive breakout on RCom debt-restructuring news. Nifty traded in a narrow range in the first half, and before the closing bell, rallied above its strong resistance of 10,500.
Nifty needs to confirm this breakout- either today or in next few sessions.Yesterday, Nifty had found strong support near 10,490 level and today this level will again act as a major support level. if Nifty success in trading above this support level, and trades above 10,518, which also happens to be its intraday pivot level, then it will be considered the start of another leg of nifty’s current uptrend.
Nifty pivot trading
If Nifty trades above its intraday pivot level, the its first target will be to reach 10, 558. Based on Nifty’s intraday pivot levels, its second target will be 10,585 and the third target will be 10,626.
Nifty day trading strategy,
However, if Nifty fails to hold on to yesterday’s gains and falls below 10,480 level, then yesterday’s breakout will prove to be a fake break out ad nifty will again become range bound. In that situation, lower support levels will become important for Nifty day trading.
Indian stock market trend analysis
Indian stock markets usually rally before their Union budget is presented, which is usually presented in February. If Nifty survives above 10,500 level, then it may see the start of a pre- budget rally in the index and broader Indian stock markets.
Tomorrow Indian markets will have their futures and options expiry session of this month, so markets may remain volatile. Yesterday’s closing hour rally in Indian stocks was basically fuelled by a short covering where traders hurried to cover their short positions as markets started climbing higher.
Bank Nifty Trading
Bank Nifty is still range bound and even though some of the banking stocks went higher with Nifty yesterday, but the sectoral index Bank Nifty still stayed below its major resistance level of 25,700. If Bank Nifty joins Nifty in going higher, then Indian stock markets will probably see a rally in forthcoming sessions before the Union Budget. Bank Nifty is still stuck within a narrow range of support at 10,500 and resistance at 10,700.
Indian stock markets will either see a continuation of this range bound trading pattern, or a slow start of a pre budget rally in markets.
Today’s Nifty pivot levels are :
Support- 25,576 -10,450-10,423
For other major indexes in Indian stock markets, you can use these levels for intraday pivot trading:
Watch these levels and trade with the short term trend.
Good luck, enjoy the session!