17 June, 2021 (7:45 am IST)
SGX Nifty is more than 100 points down and world stock markets are trading in a strong downtrend. This indicates that Indian stock markets will also follow this trend and open with negative numbers.
Although, a lower opening will still keep these markets rangebound and we may see a bounce after the negative open, on technical ground. After that, it will depend on Nifty how it trends. A continuous lower trend will drag down the whole markets, but a rangebound trend will provide support to stocks.
How To Trade Nifty Today:
- Day traders should stay away from trading for the initial one hour because RSI will reach oversold zone after a negative opening.
- Especially in smaller time frames like 5-minutes.
- Let RSI regain some balance, then day traders can resume short trading.
- Since this is a global trend, day traders should refrain from long trades because that trend will lack strength.
- However, short trades will have more seller so the lower trend will have more strength.
- Follow this trend once Nifty reverses after the initial recovery.
Indian stock markets will open negative with the global trend. It will keep markets rangebound in the previous range but the intraday trend could continue to stay negative.