25 November 2020 (8:09 am IST)
We were hoping Nifty to reach the mark of 13,000 on or before Diwali. But markets sharks surprised everybody by taking Nifty to that level just two day’s before the monthly F&O expiry. Yesterday, Nifty closed at 13,055, shattering many call sellers’ stop loss levels.
Today, SGX Nifty is 70 points higher and Nifty could retest yesterday’s high mark at the opening itself. Tomorrow these markets will have monthly Futures & Options expiry so Nifty’s new high levels could be tested today or tomorrow.
How To Trade Nifty:
- Nifty had traded almost range bound the whole day yesterday after a gap up opening.
- Its trendline had been intact through the session, indicating support.
- Today, day traders should again follow the trendline and watch if Nifty corrects or declines after a high opening.
- Watch Moving Average support levels (9-days, 20 days) on hourly or 30-minutes chart.
- Based on their strength, trade in small time frames (5-minutes, 15 minutes).
- If the MA supports are broken, it could be a declining trend.
- If those support hold like yesterday, we’ll see a rangebound trend within this week’s high and low levels.
Indian stock markets are expected to open with positive numbers on global cues. After that, their trend will stay rangebound or see a correction. Tomorrow, it will be the monthly F&O expiry so market manipulators and speculators will dominate intraday trend. Markets could also turn highly volatile.