26 November 2020 (8:00 am IST)
Yesterday, we had written that Nifty will correct / decline after a higher opening. Not only Nifty fell, it fell strongly and lost 200 points. On charts, from day’s high to day’s low levels, Nifty fell 300 points, which is a very big fall.
Today, Indian stock markets will have their monthly Futures & Options expiration, which may see another low trend, or stay range bound within yesterday’s levels.
How To Trade Nifty:
- Today, there is not global support for Nifty and we are expecting a weak trend in this index.
- Nifty’s first support zone will be between 12,850- 12,800.
- Its first resistance zone will be between 12,850- 12,900.
- This means, yesterday closing and low levels will play an important role in Nifty’s trend today.
- If Nifty falls below yesterday’s low mark, we expect it to fall further.
- If the previous low point keeps providing support, Nifty will stay rangebound.
- Day traders should keep watching in the opening hour how Nifty is trading, and prepare their trading strategy accordingly; for rangebound or downtrend.
SGX Nifty is about 60 points high at the time of writing. So we expect Indian stock markets to open positive, within yesterday’s trading range. After that, these markets will stay range bound or continue to decline.