15 February 2018 (8:22 AM IST)
Like yesterday, SGX Nifty is trading with big gains in early session, indicating a positive opening in Indian stock markets today.
But, the intraday trend in Indian stock markets could be dominated by Bank Nifty, just like yesterday when the index continued a fall through the session and dragged Nifty down with it.
The Indian PSU banking sector is so full of frauds and NPAs, that it can be safely said that this sector is sitting on a dynamite mountain. The latest fraud has come to light in the Punjab National Bank (PNB) where $1.8 billions were swindled in only one branch of the bank. Bank of Baroda (BoB) has already been fined millions of dollars by the Reserve Bank of South Africa for fraudulent practices. The State Bank of India, (SBI), India’s biggest PSU bank, has reported $3.6 billion higher NPAs, which were hidden and were found in an audit by the Reserve Bank of Indian.
But, Indian stock markets are highly speculative in nature so Bank Nifty and broader Indian stock markets continue to rally when Dow Jones rallies.
Today, Bank Nifty will have its weekly Options expiration too. That can add to the volatility.
On technical charts, Bank Nifty had closed just below its 100- Day Moving Average yesterday and if the index continues to trade below its previous close, then it will be a negative signal for the index.
However, if Bank Nifty bounces back from previous low, then the index will become range bound, just as Nifty is at this time.
Nifty is trading between its 50-Day and 100-Day Moving average and is range bound, finding more support than Bank Nifty.
So, basically, a range bound session is expected in Indian stock markets where Bank Nifty’s trend can affect Nifty, if the banking sectors trades highly negative.
Otherwise, it will be a sideways trading pattern for Nifty and broader markets where support and resistance levels will keep stocks within a strict trading range.
For Nifty, today’s pivot levels will be at 10,516. Resistance levels will be near 10,575-10,649 and 10,709. Support levels are expected near 10,441- 10,382 and 10,307.
Nifty had traded between 10,590 (high mark) and 10,456 (Low mark) yesterday, and those marks will create its immediate trading range today.
Watch those levels and trade with the short term trend.
For pivot levels of other major stock indexes, check our pivot trading page: