13 October 2020 (8:35 am IST)
Indian stock markets had already reached their range top. Today’s negative global cues might add to the downward pressure in these markets.
Nifty had crossed 12,000 level yesterday but could not sustain above this major resistance and closed much lower. Indian stock markets closed in the red yesterday, thanks to a press conference by the Finance Minister where she announced a few small financial steps for government employees, instead of any big package for business & industry.
Indian stock markets had been hoping for another stimulus and this step by the finance minister left markets disappointed. Today, we may see a continuation of the previous negative closing in these markets.
How To Trade Nifty:
- Nifty has been rising in one straight line, without any pause in recent sessions.
- It is possible that the index keeps trading lower from the major resistance of 12,000.
- If that happens, then day traders should sell at high and book profits at lower levels.
- Moving Averages and trend lines will be good indictors to use for finding trade start and exit points.
- Day traders should watch how Nifty trades in the opening hour and mark the trend line. Short sell when the price bounces but turns down from the trend line (resistance)
Indian stock markets are expected to trade low with the global trend. Like other markets, Indian stock markets are also trading range bound in a monthly trading range. We might see a negative trend though this week, within the monthly range.