The Nifty closed at 28 month lows on Tuesday, December 20 (Yesterday). Today, thanks to a 3 percent rally in American markets, the SGX is suggesting a 2 percent higher open for the Nifty. It is quite likely that the market may be in the process of starting a rally.
The primary trend is down – we are making lower lows and lower highs. Yet, all primary moves will see secondary corrections against the trend. The market is likely to begin a minor uptrend today. Traders should look to participate in this up move, since bear market rallies can be quite sharp and swift. The easiest way to join the party is to use a trend indicator on your intraday charts. While the trend remains up – stay long.