9 June, 2021 (7:53 am IST)
Indian stock markets have been in an uptrend recently and refuse to correct even after a steep drop as we saw yesterday in the first half in Nifty.. In the second half, the index recovered almost all those losses. But on daily charts, Nifty have reached overbought zone and sluggish SGX Nifty is indicating a correction. Also, Nifty made a “cloud cover” candlestick on daily charts, which is negative signal.
Despite all these negative factor, we know how much these markets are manipulated. So day traders should wait for the opening hour to be over and then see what trend emerges in these markets. That will be the main trend.
How To Trade Nifty Today:
- Yesterday, Nifty had fallen quickly in the first half of the session, then found support near 15,700.
- Today, SGX Nifty is once again signaling a resistance at current levels and Nifty may find the same resistance due to the negative global trend.
- Yesterday, Nifty had taken technical support form the 20-Day Moving Average on hourly charts.
- If Nifty closes below this support, then we can expect some correction in the index.
- Otherwise, Nifty will continue to trade in a narrow range, swinging between support and resistance levels.
- So watch Nifty how it trades after the opening trading hour.
- Usually Nifty creates a real trend at that time and before that, just traps small trader with fake trends.
- Open trade after the opening volatility has subsided, then trade with the dominating trend.
Like yesterday, Indian stock markets are poised to open flat, and trade within the weekly range with high volatility. The global trend is negative, so these markets are not expected to find support form that corner. But “market whales” can still keep these markets above the major support levels.