9 July 2019 (9:11 am IST)
Indian stock markets are in a strong downtrend and in between, markets take a breather before starting their decline again.
Last week, we saw a rangebound trading pattern in these markets near their current support levels, but the resistance level, especially in Nifty, are very strong hinting that a trend reversal will not happen from current levels but the downtrend will return sooner or later.
Nifty has been unsuccessful in sustaining above its current resistance of 11,300. On the other hand, it is still trading above its support levels of 11,200.
Although the last session had ended positively for Indian stock markets and usually, a positive candlestick near a support level indicates a trend reversal. But this downtrend is due to negative economic reasons and those reasons just keep piling up every day. So, the chances of a trend reversal are very slim for these markets.
Now we have to wait and watch when Nifty breaches its support of 11,200 because that will start a new wave in the current downtrend just as we saw after Nifty breached the support of 11,300.
We have provided intraday range levels for Indian stock indexes on our Pivot Trading page. Use those levels to judge intraday range. These levels are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Expect Indian stock markets to trade with choppiness, as long as Nifty survives its current support. When Nifty falls again, broader Indian stock markets will resume their downtrend.