27 October 2020 (8:25 am IST)
Yesterday, Indian stock markets had another highly negative session on local and global cues. Locally, Reliance Industries stock put pressure on Nifty, as was expected after the company lost against Amazon in a Singapore arbitration proceeding, which stopped it from getting into a retail business deal with the Future group.
Shares of Reliance Industries fell 3.70% and dragged down Nifty.
Today, global cues are still negative and can put pressure on Nifty and broader Indian markets. Although SGX Nifty is trading nearly 50 points higher at this hour, and Nifty will most probably open with positive numbers. But the overall trend could stay negative on global cues. Like other markets, Indian stock markets are also trading within their last two week’s trading range, but Reliance is a new worry for these markets and a fall in this company’s shares could increase the losses in Nifty.
How To Trade Nifty:
- Day traders should wait for Nifty to open and settle down in a clear trend.
- Yesterday, in spite of negative news about Reliance, Nifty had been manipulated to stay range bound until European stock markets opened with highly negative numbers.
- Only then markets sharks allowed Nifty to fall.
- Despite that, Nifty managed to recover some losses in the closing hour.
- Day traders must stay alert for such “against the news” trend in early hours and wait for Nifty to turn low from any significant resistance level.
- That will be signal to go for short selling Nifty.
- Keep your trades open as long as Nifty follows the trend line in smaller time frames (5-minutes; 15- minutes).
- Exit trades when the trend line is broken by the price.
Indian stock markets are expected to open with some positive numbers. But the minor trend has turned negative, yet range bound within the last two week’s range.