4 December 2019 (8:46 am IST)
Indian stock markets are trading within their last week’s range, and showing a trading pattern of staying within major support and resistance levels.
Nifty has made a pattern of “opening high, closing low” in the last three sessions. In the first two sessions of these 3, the index opened near 12,150 and closed near 12,050; creating identical candlesticks. Yesterday, the index again opened higher and closed lower between 12,068 and 11,994.
Nifty bounced back from its major support of 11,962 in the closing hours of the previous session. Day traders should watch this level for further support. If Nifty continues to find support near 11,960- 11,950. This level is important because on daily charts also, Nifty is finding 9-Day’s Moving Average support. Nifty will fall further if this support is broken. If the support holds, then we can expect Nifty to remain range bound within the last three session’s high and low levels.
SGX Nifty is indicating a lower opening in Indian stock markets today. Day traders should wait and watch how markets behave in the opening hour and once a day’s high and day’s low has been established, trade with the short term trend in whichever direction it goes.