9 August 2019 (8:50 am IST)
SGX Nifty is trading flat in this session, indicating that yesterday’s support and closing hour’s rally is still in place, indicating a positive or flat opening for Indian stock markets.
This week, Indian stock markets have started making “higher low” in daily charts which is a trend reversal signal. Major indexes have made “double bottom” formation (line charts) in the daily timeframe which also signals support and possibility of a trend reversal.
Nifty has made a bottom of 10,800 and from there, the index has been getting strong support near 10,850. Yesterday, the index closed above the important level of 11,000.
We have been discussing the 20-Day Moving Average on monthly charts, which falls near 11,040 and was a support for Nifty till the index recently broke it.
Now, if Nifty starts trading above this level then it will again become support and we can expect Nifty to rise till 11,300 where it will meet another resistance of 9-Day MA on monthly charts.
These are long term support and resistance levels. Short term or daily levels are provided on our Pivot Trading page. For major indexes, these levels are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
The opening trade in Indian stock markets will be between yesterday’s high mark and closing level. If major indexes open below the previous closing (or a negative opening) then the intraday trend will remain rangebound within yesterday’s trading range.\
However, if major indexes have a positive opening and start trading above the previous high mark, then yesterday’s rally will continue in Indian stock markets and support levels will become stronger and higher.