Pivot Points are pre-calculated support and resistance levels based on the previous session's high, low, and close. They are widely watched by institutional traders, market makers, and professional NSE traders โ making them self-fulfilling at key levels. Pivot Points reset daily.
Standard Pivot Point Calculation
Pivot (P) = (Previous High + Previous Low + Previous Close) รท 3
R1 = (2 ร P) โ Previous Low
R2 = P + (Previous High โ Previous Low)
R3 = Previous High + 2 ร (P โ Previous Low)
S1 = (2 ร P) โ Previous High
S2 = P โ (Previous High โ Previous Low)
S3 = Previous Low โ 2 ร (Previous High โ P)
Understanding Pivot Levels
| Level | Name | Role |
|---|---|---|
| R3 | Resistance 3 | Extreme resistance โ rarely reached on normal days |
| R2 | Resistance 2 | Strong resistance โ target for strong trending days |
| R1 | Resistance 1 | First resistance โ common intraday target |
| P | Pivot Point | Key equilibrium โ bullish above, bearish below |
| S1 | Support 1 | First support โ common intraday bounce zone |
| S2 | Support 2 | Strong support โ target on weak days |
| S3 | Support 3 | Extreme support โ rarely reached on normal days |
NSE Intraday Pivot Strategy
Opening Direction Rule:
If NIFTY opens and stays above Pivot (P) โ Bullish bias, look for longs at S1/S2
If NIFTY opens and stays below Pivot (P) โ Bearish bias, look for shorts at R1/R2
The pivot point is the most important level of the day.
If NIFTY opens and stays above Pivot (P) โ Bullish bias, look for longs at S1/S2
If NIFTY opens and stays below Pivot (P) โ Bearish bias, look for shorts at R1/R2
The pivot point is the most important level of the day.
Pivot Bounce Trade:
Price pulls back to S1 in an overall uptrend (NIFTY above Pivot)
Entry: When price bounces from S1 with positive candle
Target: Pivot Point or R1
Stop Loss: Below S2
Works best: In the first 2 hours of NSE trading session
Price pulls back to S1 in an overall uptrend (NIFTY above Pivot)
Entry: When price bounces from S1 with positive candle
Target: Pivot Point or R1
Stop Loss: Below S2
Works best: In the first 2 hours of NSE trading session
Camarilla Pivot Points
Camarilla pivots use a different formula and generate tighter levels, making them more popular for intraday scalping on BANK NIFTY:
Camarilla Key Levels
H4 = Close + 1.1 ร (High โ Low) รท 2 โ Sell zone (short entry)
H3 = Close + 1.1 ร (High โ Low) รท 4 โ Resistance (target)
L3 = Close โ 1.1 ร (High โ Low) รท 4 โ Support (target)
L4 = Close โ 1.1 ร (High โ Low) รท 2 โ Buy zone (long entry)
Weekly and Monthly Pivots
- Weekly pivots โ calculated from previous week's H/L/C. Work well for swing trades on NSE stocks
- Monthly pivots โ calculated from previous month's H/L/C. Used by positional traders and fund managers
NIFTY 50 monthly pivot points are watched by institutional traders and FIIs. A NIFTY close above the monthly pivot is often a strong signal for continued upside for the rest of the month.
