As the Nifty goes nowhere, it may be wise to focus on trading in individual stocks.
Traders may like to select at the most two stocks to trade in. The trading may be intra day, or, swing trading involving the overnight carrying of positions.
The first step in a trading plan is to determine the trend. As of now, the Nifty remains clearly in an uptrend. Therefore, stocks may be traded with an upward bias. This means, identify stocks which (a) may be ready for an upmove after a dip. (b) Stocks already in a rally, which may continue to move up.
Since I like to buy dips, I will focus on this part of stock selection. Look for a short term oscillator to become oversold. Share prices must dip with the decline in the oscillator. If you wish, you can use a 5 period RSI on end of day charts. If the RSI moves below 40, then goes up, this could well qualify as a dip that could be ending.
Some stocks that come up for Thursday, include, Grasim, HCC, HDFC and ITC. This is not a recommendation to buy any of these stocks. I am explaining how a short list can be created. Look at the charts and pick up two stocks. Now, identify a stop loss, a possible traget and buy on signs of strength during the day.
Also consider identifying stocks on themes. Today, the themes were: Reliance cap will gain because the Govt is taking a neutral stance in the brothers cases, and, IT stocks could be in flavor since the Rupee was falling. The actual buying / selling should be done on the basis of intra day price action.