14 October 2020 (10:26 pm IST)
Just till the last week, things were good for Indian stock markets both on global and local level. Then both factors turned negative for these markets. Global stock markets started retreating before the US presidential election, afraid of big and choppy waves like the last time these elections were held in 2016.
Indian stock markets were expecting a stimulus from the finance ministry; that too turned out to be a damp squib.
Now, Nifty has started turning down from the major resistance of 12,000 and we expect this correction to continue for the next two weeks, when world stock markets will stay choppy and highly volatile.
How To Trade Nifty:
- Nifty has started a minor downtrend from its current range top.
- It would a better day trading strategy to sell at high and book profit at lower support levels.
- SGX Nifty is 50 points down at this hour, and we can expect a negative opening in Nifty too, perhaps near 11,900 levels.
- That can create an opening volatile phase.
- Day traders should wait out that period, and once Nifty starts turning down from initial recovery phase, it may be a good spot to short sell Nifty.
- Remember, a correct trade entry and exit makes all the difference in day trading.
- Take the help of trend line to anticipate these trade entry and exit points.
- When the price touches the trend line but turns down- that will be time to short sell.
- When the price breaks the trend line, that would be trade exit point.
- Use 5-15 minutes time frames for intraday trading.
Indian stock markets are expected to open negative and trade down with global cues. This correction may continues for coming days in Indian stocks.