Indian markets in five out six days have ended on positive note on the back of good global cues. Yesterday, Nifty has closed with a gain of more than 300 points or 3.82%. This healthy gain is backed by economical data from China where PMI data has come at 52 level in the month of march.
Today Asian Markets are weak due to increase of corona virus issues around the world. US has now ordered to in force lock down in the country to curb the wide spread of the virus. That is why yesterday US markets have fallen.
Global Picture
If you carefully analyse the data, you will find that all the Asian markets have bounced from Today’s low. This is positive for the opening our markets too.
How Traders can trade today?
Since, SGX Nifty is showing a red tick in the morning. This suggest that there is high probability of dip at opening price of Nifty. Today strategy is to wait for a dip and then if the markets shows any sign of strength at lower level. This is the time to go long in the market. Initiate a long position in Nifty future at 8400-8450 level and look for target of 8600 level and put a stop loss at 8250 level.
In case of cash market, You can go long in Niftybees (ETF) at around Rs 89.50- Rs 90 level and look for target of Rs 92-Rs92.50 for the day. So we will follow “Buy on Dip” Strategy.