Here is my list to check before open / entering into the trade on nifty future contract, if trader follows this list believe me there is lot you can improve on you trading side. Here it is:
1. Check the medium term trend on weekly charts.
2. Find the trading opportunity in the direction of medium term trend.
3. Watch for global markets like DAX, Dow Jones and Shanghai Composite.
4. Have a look at major currency pairs i.e. EUR/USD, AUD/USD, GBP/USD, USD/JPY, USD/CAD, USD/CHF and NZD/USD.
5. Wait for global news events like PMI, GDP data, Interest rates decision, Unemployment data and Inflation data.
6. See if there is news release for Indian economy. If yes, wait for release.
7. On charts draw Fibonacci retracement and moving averages (100 EMA & 200 SMA). Check is current market price of nifty future is at any of these levels, if yes see how nifty future reacts to it.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
are you suggesting fundamentals to be considered while trading in nifty futures.
why should we check currencies for trading nifty is there any correlation? i usually trade with technical analysis and it still works for me.
do we have to check the fundamentals for trading, i am a positional trader and wont hesitate to look for near term fundamentals, but do you really think that global news do affect our markets.
Hi, I am looking to trade in banknifty, should i check if there is any global news related to banking sector. I am still unable to find if there was any necessity to watch so many global factors. If we do that, most likely to miss a decent opportunity in indian markets.