3 December 2020 (8:15 am IST)
SGX Nifty is showing signs of trying to go up, and trading with 22 points’ lead at this hour. NSE Nifty has been trying to go past 13,150 for many sessions now and this index needs a 50 points’ gap up opening today to clear that resistance. Then, we may expect a new wave of uptrend in Nifty and broader Indian stock markets.
For these markets, the credit rating agency Moody’s has made some good predictions; that the nonfinancial economy will improve dramatically in near future and GDP will also see steep rise.
It will be interesting to see if Nifty jumps at the open on this good news or stays rangebound.
How To Trade Nifty:
- In the last two sessions, Nifty has been extremely volatile but rangebound, closing at almost same levels.
- In both sessions, Nifty saw a sudden, steep fall in the middle of the session.
- The this index rose from the bottom levels with equal speed and recovered all losses.
- This shows that the inherent trend is up and no matter how much bears try to drag Nifty down, bull are taking up the index and plan to break it from its current range.
- If Nifty can manage open with a 50 points’ gap up in this session, bulls will win the battle and Nifty will proceed towards 13,200 and beyond levels.
- Day traders must be prepared to trade in both directions and follow the trend in Nifty.
- As long as the trendline slants downward, go for short positions.
- When the price makes a “double bottom” and “higher low” near any support level, change your trading tactics and take long positions.
Indian stock markets are expected to open with some positive numbers. The overall trend has been rangebound but that range could be broken if these markets manage to open with a gap up.