17 January 2018 (8:38 AM IST)
NSE Nifty is facing negative global cues today. Nifty’s technical charts also show a weakness in the index at current levels. So, Nifty will either become range bound within last two session’s high and low levels, or see further drop from here.
Bank Nifty also reversed its trend yesterday after a breakout surge day before that. So, this banking index is also expected to trade within last two session’s range, or drop future to reenter previous range.
Ruppe is under pressure against dollar. That may add to pressure on Indian stock markets. An intraday trend reversal in U.S. stock markets in the last session has dampened global stocks and it can affect Indian stocks too.
The best trading tool for day trader will continue to be pivot levels or intraday support and resistance levels. For Nifty, intraday pivot will be at 10,716. Above this mark, resistance will come near 10,745-10,791-10,820 marks and support is expected near lower levels of 10,671-10,642-10,596.
We have been continuously warning our readers that Nifty is flashing risk signals on charts and true to those signals, this index had slipped in last two sessions in spite of going higher and crossing above 10,700.
The intraday trend in Nifty can turn highly volatile. Day traders should carefully watch the Nifty support and resistance levels, observe how the index reacts near those levels and only then trade with the trend.
Here is our previous trend analysis of Indian stock markets: