16 October 2020 (8:25 am IST)
Yesterday, Indian stock markets crashed with global stocks. Nifty and other major indexes created an “engulfing bearish” candlestick at the range top which is a strong bearish signal.
Today, SGX Nifty is trading 65 points higher, which is natural after a big drop. This indicates that Indian stock markets will also open with positive numbers. But global cues are mixed and weak, so day traders should stay alert about any trend reversal.
How To Trade Nifty:
- We are expecting Nifty to remain weak in the near future and trade with the subdued global trend.
- Indian stock markets have not received the financial stimulus that they had been hoping for.
- So Nifty and broader markets are expected to undergo a correction.
- The best Nifty trading strategy at this time would be to sell on bounce.
- Day traders should wait for Nifty to bounce, reach a resistance level and turn down. That point will be a good selling level.
- Profit booking should be done when the trend line is broken near any lower support level.
Indian stock markets are expected to open positive, but the short term trend in these markets has turned bearish.