5 March, 2021 (8:29 am IST)
Indian stock markets are following the global downtrend. Despite that, these markets are trading in a broad weekly range.
Today, SGX Nifty is indicating that Nifty will open near or below the major support of 15,000.
How To Trade Nifty:
- Yesterday, this index had shown support after a gap down opening and rose up to trim some of the opening losses.
- Yesterday was also the weekly Options expiry session for Nifty and Bank Nifty so we cannot expect a repetition of the previous trading pattern in Nifty.
- If Nifty opens below 15,000 mark and stays below it, then it will indicate weakness and more losses for the index.
- Day traders should wait until the opening choppiness is over and Nifty indicates a clear trading pattern.
- Follow that pattern with the help of a minor trendline and trade with the trend.
- Putting stop loss in all open trades is an important requirement as Nifty has been highly volatile in these down, but rangebound trending days.
Indian stock markets are following the global downtrend. Markets are highly volatile and will follow the trading pattern of bigger markets