13 August 2018 (9:28 AM IST)
Indian stock markets have fallen with global stocks and a lower Rupee is increasing pressure on these markets.
These markets have been enjoying a strong uptrend till now so support and resistance can be judged by short term Moving Averages.
All major Indian stock indexes have opened with a gap down and are trading with deep cuts in early session. On 4-hours chart, both Nifty and Bank Nifty have fallen below their 9-Day and 20-Day MA, which is quite negative signal for the time being.
Looking at Fibonacci levels, Nifty is earnest support at 11,330 and nearest resistance at 11,370. So, the index may trade between these levels for some time.
Bank Nifty has a support zone nearby, between 27,770- 27,600. It has current resistance at 27,850 (indicated by its 20-Day MA) and the index could remain in this trading zone for the time being.
Since this downtrend is triggered by a negative and big global event, this trend is expected to remain in place as long as global stock markets are trading negative.
This negative trend will reverse only when major indexes bounce so high that they cross above their 20-Day and 9-Day MA on 4-hour charts. In tact condition, they will turn rangebound
Day traders should trade with the negative trend and should not attempt to see any positive signal on charts, at least in bigger timeframe.On small timeframe (like one minute or 5 minutes) minor bounces will be normal but they will not make the trend.
So, follow the trend and trade with it.