2 November 2020 (8:04 am IST)
Global cues are very volatile in today’s session. Indian stock markets could also show the same choppy pattern.
On technical charts, SGX Nifty is making a positive candlestick for daily, weekly, and monthly timeframes. At this time, SGX Nifty is trading more than 40 points up as global cues turn positive. We can expect Nifty to also follow global cues and trade range bound within the last week’s trading range. This range could be narrow and increase volatility in Indian stock markets.
How To Trade Nifty :
- Nifty is expected to open with a gap up.
- The index will find support from better than expected GST numbers, so we could see a positive bias in Nifty.
- Day traders should wait after the high opening and wait for Nifty to give a clear signal how it is going to trade.
- This signal will come when the price touches the trendline.
- If price bounces up from the trendline, day trades can initiate long trades.
- If price falls after touching the trendline, it would mean that sellers are still dominating and day traders can start short trades.
- Nifty and broader markets will stay range bound so it is possible that Nifty trades in both directions and give traders a chance to buy and sell too.
- This will require self discipline and control. If you have this, then you can trade in both directions.
- If not, then trade only in one direction, take your profits and exit markets for the day.
Indian stock markets are expected to open positive and trade in the last week’s trading range. Markets will stay highly volatile and follow the global cues.