Pre-calculated support and resistance levels derived from the previous day's price action, forming the backbone of intraday trading on NSE.
Pivot Points are mathematically calculated support and resistance levels based on the previous trading session's high, low, and close. They are among the oldest and most trusted tools in technical analysis, originally used by floor traders at the Chicago Mercantile Exchange before the era of electronic trading.
Unlike indicators that update with each new candle, pivot points are calculated once per day (or per week/month) and remain fixed throughout the session. This means every trader looking at pivots sees the same levels, making them self-fulfilling prophecies to some degree. When thousands of Nifty and Bank Nifty intraday traders are watching the same pivot level, price tends to react at those points.
The standard pivot calculation produces a central pivot point (P) and three levels of support (S1, S2, S3) and resistance (R1, R2, R3). Most intraday price action occurs between S1 and R1, with S2/R2 and S3/R3 representing extreme moves. For Nifty, reaching S3 or R3 in a single day would represent a move of 2-3%, which happens only during significant events like budget day, election results, or global crises.
P = Pivot Point (central level and bias divider)
H = Previous day's High
L = Previous day's Low
C = Previous day's Close
R1, R2, R3 = Resistance levels (ascending)
S1, S2, S3 = Support levels (descending)
Standard pivot levels create a roadmap for the trading day. Price above the central pivot suggests bullish bias; below suggests bearish. Most moves are contained between S1 and R1.
Camarilla pivots were developed by Nick Stott in 1989. They produce levels that are closer together than standard pivots, making them especially useful for intraday range trading and breakout identification on Nifty and Bank Nifty.
H3 & L3 = The inner range. Price bouncing between H3 and L3 indicates a range-bound day.
H4 & L4 = Breakout levels. A close above H4 = strong bullish breakout. Below L4 = strong bearish breakout.
Key strategy: Buy at L3 with stop below L4. Sell at H3 with stop above H4. If H4/L4 breaks, reverse and ride the breakout.
The Central Pivot Range adds two additional lines around the standard pivot point, creating a narrow band that acts as the day's key decision zone. CPR has become extremely popular among Indian intraday traders.
TC = Top Central Pivot -- upper boundary of the CPR range
BC = Bottom Central Pivot -- lower boundary of the CPR range
CPR Width = TC - BC (the narrower, the more likely a trending day)
A Virgin CPR occurs when the previous day's price action never touches or enters the CPR zone. This means the CPR levels were never "tested" and remain "virgin." Virgin CPR levels carry forward as strong support/resistance for future sessions.
On Monday, the CPR for Nifty is calculated at 24,400-24,430. However, Nifty opens at 24,500 and trades between 24,480 and 24,650 all day, never touching the CPR zone below. This Monday CPR is now a "virgin" CPR.
On Tuesday, if Nifty drops toward 24,400-24,430 (the virgin CPR from Monday), it will likely find strong support there because that level has not been tested yet. Untested pivots act as magnets and strong S/R.
Professional traders keep track of virgin CPR levels from previous sessions. Sometimes a virgin CPR from 3-4 days ago still acts as strong support or resistance when finally tested.
Wait for Nifty to approach a pivot level (S1, P, R1, etc.) and watch for a reversal candle (hammer, engulfing, pin bar). Enter in the direction of the bounce with a stop-loss just beyond the pivot level. Target the next pivot level. Example: Nifty drops to S1 at 24,380 and forms a bullish hammer on the 5-min chart. Buy at 24,400 with stop at 24,350, target P at 24,580.
When price breaks through a pivot level with strong momentum and volume, trade in the breakout direction with the next pivot as the target. Example: Nifty breaks above R1 at 24,780 with a strong bullish candle. Buy at 24,800 with stop at 24,740, target R2 at 24,980. This works best on narrow CPR days.
Check the CPR width before the market opens. If narrow (less than 40 points on Nifty), prepare for a trending day -- buy ATM options once the breakout direction is clear. If wide (more than 80 points), sell options (OTM straddle or strangle) to benefit from the expected range-bound movement and theta decay.
Combine the first 15-30 minute opening range with pivot levels. If Nifty's opening range high coincides with R1 and it breaks above, the confluence creates a stronger buy signal than either alone. This strategy is popular among Bank Nifty intraday traders for the 9:30-10:00 AM breakout window.
The CPR for Nifty is calculated at 24,520-24,535 (only 15 points wide -- very narrow). This signals a high probability of a trending day.
At 9:30 AM, Nifty opens at 24,550 (above CPR) and quickly breaks above R1 at 24,620. A trader buys Nifty 24,600 CE at ₹95.
Nifty trends upward all day to 24,850 (+300 points from CPR). The CE option moves from ₹95 to ₹280. Profit = ₹185 x 25 = ₹4,625 per lot.
The narrow CPR correctly predicted the trending day, and pivot levels provided the breakout confirmation.
Bank Nifty's Camarilla levels show L3 at 51,800 and H3 at 52,200. At 10:15 AM, Bank Nifty drops to 51,820 (near L3) and forms a double bottom pattern on the 5-minute chart.
A trader buys at 51,850 with stop at 51,750 (below L4) and target at H3 (52,200).
Bank Nifty bounces from L3 as expected and reaches 52,150 by 2 PM. Profit = 300 points x 15 qty = ₹4,500 per lot. Risk was only 100 points, giving a 3:1 reward-to-risk ratio.
Pivots provide probable support/resistance zones, not guarantees. On days with strong news-driven moves (RBI policy, global events), price can slice through multiple pivot levels without pausing. Pivots work best on normal trading days without major news catalysts. Always have a stop-loss.
Standard pivots, Camarilla, and CPR serve different purposes. Standard pivots define the day's range, Camarilla is best for range trading and breakouts, and CPR tells you whether to expect a trending or range-bound day. Use CPR to determine the type of day, then apply the appropriate pivot strategy (standard for breakouts, Camarilla for range trades).
While daily pivots are most popular for intraday trading, weekly and monthly pivots are powerful for swing and positional trading. Monthly pivot S1 or R1 on Nifty can act as significant turning points for multi-week trades. Calculate weekly pivots for swing trades and monthly pivots for positional trades. They carry more weight than daily pivots.
While narrow CPR increases the probability of a trending day, it does not guarantee it. Some narrow CPR days still result in choppy, directionless markets, especially around expiry days. Use narrow CPR as a probability tool, not a certainty. Wait for the actual breakout before committing capital.
Pre-calculated support/resistance levels. Leading indicator (calculated before the market opens).
Based on previous day's High, Low, and Close. Calculated once per session (or week/month).
P (central pivot), R1-R3 (resistance), S1-S3 (support), CPR (Top/Bottom), Camarilla H3/L3/H4/L4.
Intraday trading on Nifty/Bank Nifty, identifying daily bias, setting targets and stop-losses, CPR-based day type prediction.
Static levels that do not adapt during the day. Can fail during strong news-driven moves. No directional bias on their own.
VWAP, Moving Averages, Volume Profile, candlestick patterns, and opening range breakout strategies.
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