Indian Stock Markets Today: Correction Over, Ready to Break Out?

11 June, 2021 (7:32 am IST)

Indian stock markets opening: SGX Nifty is tracking US stock futures, which have turned negative now. So, SGX Nifty has also given up its early gains. But SGX Nifty is clinging to its range top levels and if US stock futures do not drop much, it seems possible that SGX Nifty will stage a break out and Indian stock markets will follow it.

Indian Stock Market Trend Analysis: Indian stock markets first traded in a narrow range for many weeks. Then in the second of of the last month, Nifty started and uptrend and Indian stock markets followed that trend. This week has been range bound for Indian stocks. Today, these markets will trade in that range, or climb higher to new records.

How To Trade Nifty Today:

  1. Nifty traded within the previous range in yesterday’s session.
  2. It kept an uptrend through the intraday session, proving bears ( and us) wrong about having a correction.
  3. So, if Nifty is not ready to correct, then obviously it will go up.
  4. For today’s session, Nifty has two possible trend scenarios.
  5. It will drop and trade rangebound.
  6. Or, it will climb and stage a break out.
  7. In both conditions, day traders must watch how Nifty behaves “after” the opening hour.
  8. By that time enough candlesticks are created on 5-minutes or 15-minutes charts and the intraday trend becomes clear.
  9. Take help of a trend line from the last trading hour of the previous session, and you can find out if Nifty is getting support or facing resistance.
  10. Once the trend becomes clear, trade with this minor trend (in case Nifty drops), or uptrend (if Nifty stages a breakout).

Indian stock markets are expected to open positive and trade with the positive global cues. It is possible that these markets stage a breakout from this week’s range and climb to a new record high.

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