17 August 2020 (8:25 am IST)
Last Friday, Indian stock markets had a big fall in the second half of the session.
Nifty fell 255 points from the day’s high to the day’s low points. When the index started the session, it was looking to break out of 11,400 but when it closed, it was near breaking down the 11,100 mark.
Today, SGX Nifty is almost 100 points up, but weak and unstable. This index is still within the previous session’s range and a similar opening is expected for Nifty and broader markets; positive but range bound.
How To Trade Nifty: Day traders must wait and see what kind of trend develops in markets. Yesterday’s session also taught those who trade without stop loss, how important this money management tool is. Many small traders were long in Nifty futures and suffered heavy losses when many trading platform shut down due the market volatility (or deliberately to protect traders from high volatility). Therefore, please remember that money management is equally important in trading.
Indian stock markets are expected to open positive but the range will be within the last session’s high and low levels. If the previous low is broken, we can expect more losses in these markets.
Nifty is range bound in weekly charts too and that range will also be played out this week.