8 June, 2021 (8:51 am IST)
Although world stock markets are trading negative and SGX Nifty is also slightly negative, it is difficult to say if Indian stock markets will also correct. These markets have been going on a steady climb ever since Nifty signaled an uptrend in mid-May.
On top of that, these markets have been trading in a weird pattern; that is, open with a gap up, then trade in a narrow range. This has made trading difficult for day traders.
Today, Indian stock markets are expected to open flat of with minor gains/ losses. That will give day traders a chance to trade in a bigger range and earn some profits. Just wait till the trend is clear and then open trade positions.
How To Trade Nifty Today:
- SGX Nifty is 11 points down at the time of writing.
- Nifty may also follow this slightly negative opening.
- If that happens, day traders shouldn’t assume that Nifty will trade lower. Wait for the opening volatility and small, fake trends to get over.
- Usually the real trend emerges after the opening hour.
- So wait for that trend and trade with it with suitable trading strategies.
Indian stock markets are expected to open with subdued numbers, then trade with either the negative global cues, or continue their current uptrend. Day traders must wait for these markets to create a trend, then only start trading. Otherwise, they may get trapped in overtrading by buying and selling every few minutes.