17 September 2020 (8:50 am IST)
SGX Nifty is trading down today, falling more than 100 points with US stock futures.
This indicates that Indian stock markets will also open negative. But the trend in Indian stock markets will depend on how low Nifty will open? We have seen in recent weeks that some times Nifty does not exactly follow the SGX Nifty. If that happens, then we may see a not-so-deep-drop in Nifty and broader Indian stock markets.
How To Trade Nifty:
- Nifty has been trading in a straight line, in a range bound trend and yesterday, this index traded in an intraday uptrend to close above 11,600.
- This gave an indication of breaking out of the current range for this index.
- However, if Nifty also opens with deep cuts today, it will reach the support levels of its current range and rise after the initial loss.
- For day trading in Nifty, traders must wait until the opening volatility in over, and watch what kind of intraday trend Nifty creates.
- If the index has big gap down opening, it will remain range bound within this week’s trading range.
- If Nifty opens with small cut and stabilizes quickly to rise up, then we may see another session of uptrend in Nifty, as we saw yesterday.
Indian stock markets are set to open negative on global cues. These markets have been range bound after a correction and have been rising from support levels in the last few sessions. Either that rise will continue after a lower opening, or major indexes will trade negative through the session with the global trend.