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The best trading strategy to find Nifty and Bank nifty direction before market open

Nifty Trend is important for Nifty Option and Future trader as Option price follows trend of Nifty. Options trader should check accuracy of Nifty and Bank nifty daily technical trend for one month which is posted daily before market open. After one month you can decide to join with us to get online technical analysis training sitting in your home.

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The best trading strategy to find Nifty and Bank nifty direction before market open

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  1. The best trading strategy to find Nifty and Bank nifty direction before market open

  2. Before going to strategy let’s know about Nifty. What is index and how to trade it? What are trend and its role in technical analysis? How can you learn technical analysis and different trading strategy? There will be a question why will I trade in nifty if I am trading in stocks. Nifty is index of Indian stock market and comprises top 50 companies. Broadly it indicates Indian economy health. So its trend is most important and top company will follow its trend. Those who trade in Nifty future and Options they closely follow Nifty trend which is posted daily before market open. This trend shows overall market trend which helps technical trader to trade both in stocks and options. Knowing the trend of a particular stock may not give you success. We will discuss with examples to understand better. Nifty direction helps future trader. Nifty future is derivative of Nifty index. Its lot size is 75 and expiry date is every month last Thursday. So future follows the exact technical pattern of index trend. For this reason future traders always track index trend to trade. Let’s take examples to understand why it is so important.

  3. Example 1 Let’s say you are trading in stocks. Stock trend is positive for the day. But Nifty trend posted daily here is indicating negative trend. Now this sentiment and trend will change trend of stock and you will be confused. So in technical analysis first index trend analysis is done and then stocks are searched with same technical pattern of Nifty. Example 2 Index Option trader closely follows Nifty future as Nifty option trend depends upon Nifty technical direction. Most trader trade in option but without technical analysis it is nearly impossible to get profit in option as option is most critical derivative. Most trader use chart of a particular strike contract where as they should use Nifty future live technical chart to do analysis. Here technical trend is required which is posted daily before market open to learn. Example 3 In a bearish market positional trader get trapped. Technical trader use trend of Nifty and Bank nifty to analyze trend and moves out with no loss but general trader get trapped. Stock trader use direction of Nifty to hedge their position to minimize loss. Bearish signal in Nifty indicates to square off position to avoid loss. Bank nifty movement also depends upon Index trend, so technical trend of Nifty is most important factor in Indian stock market.

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