18 November 2020 (8:07 am IST)
Indian stock markets had a volatile intraday trend yesterday, where the first half was negative and in the second half, markets recovered most of their losses.
Nifty reached very close to the 13,000 mark, as we had been writing previously. Today, SGX Nifty is trading range bound and slightly negative. That indicates that Nifty may also trade within the previous range.
How To Trade Nifty:
- Market whales will try their utmost to make this index touch 13,000 so day traders should watch out for signals of a rising trend.
- We had written yesterday that “double bottom” will be a good up signal if Nifty falls in early trading.
- That’s exactly how Nifty traded and made a double bottom signal before going up in the second half.
- Yesterday’s big gap up opening has created a new range for Nifty and today, we expect Nifty to start trading within that range and be choppy in an effort to go higher.
- Day traders can check for trading opportunities in both up and down direction because the early trend will be range bound.
- However, we would advise day traders to wait, watch and have patience until a clear trend is established in Nifty, then follow and trade with that trend.
We expect Indian stock markets to open flat and trade rangebound initially. Later in the session, the trend can move in any direction; up or down.