15 January 2021 (8:15 am IST)
SGX Nifty is down by 40 points, indicating that Indian stock markets could open lower by the same numbers.
That will keep these markets rangebound like the last 2-3 session. A particular trading pattern has been seen in these markets, which we have discussed before too. These markets correct intraday and then recover their losses. The overall weekly and monthly trend has been strongly positive in these markets so buying after a bounce from major support levels has been a good trading strategy for Indian stocks.
How To Trade Nifty:
- This index has been trading up and down but closing mostly positive this week.
- If Nifty opens lower today, look for a buying opportunity near major support levels.
- Don’t just buy because Nifty reaches any such level.
- Confirm that the index is giving trend reversal signals, then open a long trade.
- This week’s high and low levels will make major resistance and support levels.
- Trade between those levels, following the minor trendline.
Indian stock markets are expected to open low and trade rangebound. The major trend in these markets is positive.
On hourly charts, Nifty is making a clear rangebound structure. Day traders can follow the support and resistance levels of that structure and trade between those levels.