25 July 2019 (8:54 am IST)
SGX Nifty is trading 20 points higher in the opening session, indicating that Indian stock markets could also open with slight gains.
If this opening support holds up, then Indian stock markets will trade within their trading range of yesterday, otherwise, the downtrend will continue in these markets.
This is also the monthly F&O expiry session and that can keep Indian stock highly volatile. Intraday range levels are given on our Pivot Trading page for day trading. These levels are:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Yesterday, Nifty easily broke the support of 11,300. As we had written previously, it was a matter of time when Nifty fell below this support and yesterday in the opening hour, Nifty fell below that support and went down close to 11,200.
On the negative side, the support of 11,300 was that of 9-Day Moving Average on monthly charts, and once this supports gives way, Nifty may fall to 11,000.
The monthly, weekly and daily trends continue to be negative for Indian stock markets, signaling a very strong downtrend. No technical support is working and there is no certainty that Nifty will stop at the 11,000 level.
But, some positive indications also emerged in the previous session.
Yesterday, the Indian stock market had closed much higher than their day’s low mark. For Nifty that was near 11,230. So today’s trading range will remain between the previous closing and previous low mark.
On weekly charts, Nifty found the support of the lower band of Bollinger Band indicator, which was at 11,250. This levels also happens to be a Fibonacci level. Nifty closed above this technical support so now we can expect Nifty to become rangebound between 11,330 to 11,230 levels.
Day traders should cautiously watch both support and resistance levels and trade with the trend within those levels. Do not try to anticipate what the trend is going to be, just wait and watch and once the trend becomes clear, trade with that trend.
The overall trend is strongly negative in Indian stock markets, the intraday trend could be rangebound or negative.