12 April, 2021 (8:40 am IST)
SGX Nifty is 240 points down at this hour, indicating that Indian stock markets, especially Nifty, will open with deep cuts.
These markets have been trading in a narrow weekly range for the past many weeks. Today’s low opening will take markets close to the support levels of that weekly range. Day traders should wait to see how markets behave after the lower opening, then follow the dominating trend.
How To Trade Nifty Today:
- If Nifty breaks the weekly range after a highly negative opening, it could turn out to be a strong downtrend.
- As technical rules say, longer the sideways trend, stronger the breakout or breakdown is.
- If Nifty fails to gather support at lower levels such as 14,600 or 14,300; it can go down to 14,000 or lower than that.
- Day traders should let Nifty settle after the initial choppiness, then trade with the lower trend.
- Global cues are also weak today, so Nifty may continue to trade down in this session.
Indian stock markets are expected to open with a big gap down. After that, the trend may continue to slide down since global stock markets are also negative today.