29 October 2020 (8:36 am IST)
Yesterday, Indian stock markets showed the might of market manipulators who, despite highly negative global cues, kept Nifty above 11,700 mark because today is the monthly Futures & Options expiry and they have major positions near this level.
Today, SGX Nifty is 60 points down. However, if Nifty much closer to 11,700 and recovers to go above this level, then we might see a range bound trend in Nifty and broader Indian stock markets. If Nifty falls below 11,700 and stays below this level, only then day traders should believe that this index and Indian stocks will trade negative with global cues.
How to Trade Nifty:
- Nifty may turn highly volatile as today’s session will see F&O expiry.
- Day traders must trade cautiously and conserve their trading capital for the next week, when we may see some big trend in world stock markets, which will be followed by Indian stock markets.
- Yesterday also, we had advised our readers to stay away from trading if Nifty trades positive and trade only when this index falls.
- Today again, we will repeat that advice, that trade in Nifty only if it trades according to the global negative trend.
- Do not trade in Nifty in this session if it stays range bound or trades positive. That will indicate market manipulation.
SGX Nifty is indicating a gap down opening for Indian stock markets. The trend will depend on how market sharks paly with Nifty. If they allow to fall Nifty, then the trend in these markets will follow the negative global cues. If Nifty stays range bound, then it will be futile to trade in this index.