20 November 2020 (8:10 am IST)
Yesterday, Indian stock markets had crashed in the closing hour with the negative global trend. Today, SGX Nifty is swinging between slightly positive and negative numbers.
After big drops, it is possible that Indian stock markets open with some positive numbers. But technical signals have changes and now, a downtrend looks more possible for these markets. Nifty made such a big “top hammer” candlestick (negative signal) that even Thor would be proud of that hammer!
How to Trade Nifty:
- It is possible that Nifty rises in the opening session.
- But its drop below the support of 12,800 indicates a weakness in its trend.
- Nifty was range bound earlier and could trade range bound in the early trading, but the weakness is there and traders will look to short sell the index near resistance levels.
- Day traders should wait and watch Nifty in the opening hour.
- Once Nifty starts turning down from any resistance level, it will be good opportunity to short sell.
- We will not advise to go for long trade because technical signals have changes and now, on daily charts, even the RSI is turning low.
Indian stock markets are set for a flat opening. Yesterday’s big fall has created negative signal for Nifty and we expect this index to correct for a few hundred points next week, which will also be the monthly Futures & Options expiry week.