12 January 2021 (8:14 am IST)
Yesterday, Indian stock markets had continued their uptrend but the trading range was very small after a gap up opening.
Today, SGX Nifty is slightly lower, indicating a flat or positive opening in Indian stock markets. Like yesterday, the trading range may stay small and markets may trade within the previous range.
How To Trade Nifty:
- Nifty has broken out of its previous range so this index is expected to continue with the current uptrend.
- For day trading, buying on dips is still a better trading strategy.
- Day traders should wait after the opening bell to see how Nifty trades and what intraday high and low levels it makes.
- The day’s trend could stay between those levels.
- Day traders can trade with the minor trend within those levels that will indicate intraday support and resistance levels.
Indian stock markets are expected to open near the previous closing levels and trade rangebound with the global cues. If major indexes cross above the previous high mark, then the trend will be up. If major indexes start trading below the previous low mark then we may see a minor dip in these markets.