11 May, 2021 (7:55 am IST)
Indian Stock Market Trend Analysis: Indian stock markets have been trading in a broad range for many weeks. Yesterday, these markets reached their current range top levels and today, as the global cues turned negative, SGX Nifty also fell 200 points.
This is a typical rangebound trend and traders can mark range top and range bottom to trade with profits. Day trading is useless in such range bound trend because theses markets keep going up with gaps and keep coming down with gaps too.
How To Trade Nifty Today:
- SGX Nifty is indicating that Nifty may open 200 points down.
- Day traders should wait for any recovery after that and short sell when Nifty starts falling again.
- Nifty will be coming down from its range top levels and will face the same support levels that it has been facing in recent few weeks.
- These levels are 14,800-14,660-14,500 etc.
- Nifty may or may not stop at these levels.
- Day traders will have to stay cautious near these levels.
- For today, watch if Nifty starts climbing again after a gap down opening, or continues to fall.
- Based on its trend, trade with strict stop loss in all open trades.
Indian stock markets are set for a gap down opening with global cues. This is a strong downtrend and Indian stocks may see more decline after the gap down opening.