21 May 2018 (7:49 AM IST)
Indian stock markets are facing two contradictory trend deciding factors today:
1) Extremely high U.S. stock futures could encourage market speculators in these markets to blindly follow that high trend and trigger a positive trend in Indian stock markets too.
2) Political drama in Karnataka and setback for ruling BJP could continue the negative trend in Nifty that started last week.
SGX Nifty is trading hardly 10 points higher at the time of writing, but one must consider the fact that this index had closed more than 60 points lower last Friday during the session in U.S. stock markets. So today, this index has covered that loss and added 15 points more.
That means, Nifty will either open with a jump following the trend in U.S. stock futures; or open flat following its previous minor downtrend on local factors.
If Nifty opens higher, then 10,704 will act as its major resistance. For Bank Nifty, 26,105 will act as immediate resistance.
If, however, Nifty opens flat and picks up previous lower trend, then 10,600 will act as a resistance and Nifty will have a new, lower targets of 10,533 and 10,450.
Nifty has fallen below its 20-Day Moving Average on daily charts which confirms a downtrend in this index. Bank Nifty is still above that technical level so Bank Nifty is still in a rangebound trend.
If Bank Nifty trades lower then its next targets will be 25,680 and 25,510.
These are long term targets. Intraday targets will be indicated by pivot levels.
Nifty has intraday pivot at 10,620. It has intraday resistance levels near 10,651-10,706- 10,737 and support near 10,565- 10,534-10,479.
Day traders should give markets time to get over the initial volatility and create a clear trend. After that, follow that trend and set trade entry or exit points near any of these support or resistance levels.
Pivot levels for major India stock indexes are given on our Pivot Trading page. Same are available here:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Watch these levels and strictly follow the market trend.