8 February 2019 (9:16 am IST)
We have been warning our readers in Indian stock markets that these markets are close to range top levels and a trend reversal could come in at any time. Today, these markets have opened with a gap down and have now turned range bound.
Now, day traders should wait and watch for “lower high” pattern on hourly charts and if and when that appears, they can take short position till lower range support levels.
Markets will remain volatile and choppy in initial trading. Support levels have been very strong in these markets and one negative opening will not be enough to start a full down trend from top levels.
Day trader must wait for confirmation of a “lower high” pattern before taking any position. For short term trading they can still buy and sell near support and resistance levels. We have provided these levels 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
Expect a choppy intraday trend in Indian stock markets where major indexes will trade within previous two sessions’ high and low levels. If you check the weekly Bollinger Band indicator, you can see that major indexes are now turning down from the weekly upper band. That will encourage bears who have bee waiting on the sidelines this whole week.