11 January 2021 (8:49 am IST)
Last Friday, we wrote that Nifty was starting a minor downtrend because it had fallen in the previous two sessions after high opening. Guess Nifty didn’t like that and jumped up in the second half of the session to rally 200 points.
Today, SGX Nifty is again 100 points up, showing that Nifty will also open higher, perhaps near 14,450 mark. With that breakout, Nifty and broader Indian stock markets have resumed their uptrend. Indian stock markets traditionally rally before the Union Budget ( to be presented on 1st Feb). Maybe Nifty has started that rally now.
How To Trade Nifty:
- As we repeat on days of gap up openings, day traders should give time to Nifty to settle down after today’s higher opening, as indicated by SGX Nifty.
- Wait for Nifty to create a trading setup, such as “lower high” (negative) or “higher low” (positive) pattern.
- Usually Nifty takes 45 minutes to create such patterns after the opening bell.
- Wait until that time and then, follow the trading setup and signals for intraday trading.
Indian stock markets had staged a positive breakout on the last Friday. Today, SGX Nifty is hinting at a higher opening in Indian stocks. Nifty could open 100 points up. After that, the uptrend may continue or these markets may trade range bound between the previous closing and today’s opening mark.