9 April, 2021 (8:30 am IST)
Yesterday, Indian stock markets had tried to breakout of their current range, but it failed and major indexes dropped back within the range in closing hours.
Today, SGX Nifty is 56 points down at the time of writing, showing that Indian stock markets, especially Nifty, will have a gap down opening and rangebound trend.
How To Trade Nifty:
- This index has been trading in a very strict weekly range, making it easy to trade Nifty within the support and resistance levels of this range.
- Buy near support and sell near resistance.
- After yesterday’s positive trend, Nifty could see a negative trend today.
- Day traders should watch if Nifty continues to decline after a negative opening.
- If it happens, then short trade can be opened with strict stop loss.
- The opening minutes are usually very choppy, so day traders should wait for 15-30 minutes to see how the trend is progressing.
- Once it become clears if the downtrend continues or Nifty becomes rangebound, then the corresponding intraday trading strategies can be applied in trading.
Indian stock markets are expected today to open negative. Since these markets are trading rangebound within this week’s range, the downtrend may continue until the lower support levels or below.