15 September 2020 (8:05 am IST)
In yesterday’s session, Indian stock markets opened high, but could not sustain that momentum and fell in the last hour to close negative. Nifty closed again at 11,450, where it has been closing for the past two sessions too.
If you have been reading our post for a few months, you will remember that Nifty had found a strong resistance at 11,375. This level has now become a support for the index and 11,500- 11,550 has become a resistance, which is keeping Nifty’s trend range bound. Today also, SGX Nifty is trading positive, indicating that Nifty will open within yesterday’s trading range.
How To Trade Nifty: For Indian stock markets Nifty (or Nifty 50) is the trend deciding index. That’s why traders give it much importance.
- Yesterday, Nifty opened with good gains and stayed range bound in the early trade. But then, the index broke the trend line on hourly charts.
- Technical analysis of Nifty’s chart shows that the RSI had reached the overbought zone in the same time frame. Both these factors brought more sellers to Nifty than buyers and we saw a big slide in the index within a few minutes.
- Although Nifty recovered in the closing minutes to close at 11,440, but it has refused to go higher in the last many sessions, showing selling pressure at higher levels.
- For day trading in Nifty, traders should make it a habit to wait and watch how this index trades in the first hour. That will give them an idea of Nifty’s direction.
- Once you know how Nifty is trading, you can easily follow that trend and trade with the trend line.
- Watch the trend in bigger time frames and then trade in the smaller time frames for day trading.
- If you are a positional trader, then check weekly and monthly time frames and trade based on daily trend.
Indian stock markets have become range bound, with a weak trend. Intraday volatility is very high in these markets on negative economic reports. SGX Nifty is indicating a positive opening for Indian stock markets today. That will keep these markets range bound within the last week’s trading range.