18 May 2018 (8:16 AM IST)
Indian stock markets continue to be dominated by political tussle after Karnataka Assembly elections, in which no party got a clear mandate to form a government. The matter has gone to the Supreme Court and today, it will be heard at 10.30 AM.
That means, Indian stocks will remain either highly volatile in early session or turn slow paced and range bound, waiting for the court’s verdict.
At the time of writing, SGX Nifty is some -20 points down, but mostly range bound and waiting for Nifty to open and decide its trend.
Technically, Nifty has been falling since last three sessions and yesterday, the index saw steep decline in the closing hours. But Bank Nifty did not fall much and closed above its current support of 24,000.
Nifty had closed right at its 20-Day Moving Average and if the index falls below its current support of 10,658 (which is also lower than previous low mark) then the indexes will fall some more and find net support only near 10,600 or 10,546. Yesterday’s fall in Nifty also came with bigger than average volumes, which is a negative signal.
If, for any reason Nifty turns higher than it will become range bound and trade within this week’s high mark, which looks difficult right now. Technically, Indian stock markets have started a trend reversal from higher levels and are under pressure till today. That means resistance levels will dominate these markets and if this lower trend continues, the it will be good opportunity to sell at every bounce.
Nifty has intraday pivot mark at 10,708 with support near 10,639- 10,595-10,526 marks and resistance near 10,751-10,820- 10,864. Market volatility may remain high as we have seen in recent sessions, so day traders should carefully trade only near major support or resistance levels. The dominating intraday trend had been negative so selling at high would be better trading strategy than buying at low.
Pivot levels of major Indian stock indexes are available on our Pivot Trading page. Same are are given here:
- Intraday Bank Nifty Pivot levels
- Intraday Nifty Pivot levels
- Intraday Nifty IT Pivot levels
- Intraday Sensex Pivot levels
Wait, watch and trade slowly- that should be your day trading strategy in these markets today. And do keep strict stop loss in all your trades. Otherwise such markets volatility can hit your trading capital.