Due to the US Trade Wars with China, the US market plunged and as an effect, the whole Asian market also bleed red and plunged up to 3% in correlation with Dow Jones 3% down.
SGX Nifty is also going to blow below 10K level. Thus from 4 figure to 3 figure. Now, many traders want to get the chance to make fast bucks on this Nifty gap down open. Hence, here, we have shown some Nifty gap down open training strategy for intraday traders on 23 March 2018.
BIG PICTURE: There are two possibilities on Gap down days:
- Gap Down, followed by the strength which leads to up movement.
- Gap Down, followed by further down movement.
1: Nifty Gap Down Strategy – Basic Rules
The strategy is very simple.
When the market open with a gap down and while opening if it crosses yesterday low then it should be considered as strong short.
Note: This is an age old practice and it requires patience because of the new strategy of buying on a gap down opening as mentioned below.
2: Nifty Gap Down Short Rules – Recommended
- Gap down open for more than 1%.
- Should break the low range of first 5 or 10 or 15 mins candle.
- Enter into it once the low range is broken.
Also Read: Mrf Share Price in 1990
3: New Practices in Nifty Gap Down Opening Scene
There is a common practice in the intraday traders in gap down strategy:
Note: This practice is recommended and used by those experienced traders. Newbies use 2nd for a safe play.
RISKY BET: BUY AT GAP DOWN OPEN and Sell it on any high of 20-30 points in next 10 to 30 minutes.
MORE SAFE BET: Sale on any high after the gap down opening of nifty. After gap down open, let’s say nifty is opened around 9990 around 125 points lower.
Here, you can wait till some buying made at these level, and around 10020 or 10030 you can go for shorting nifty. It will be a more safe bet.
4: Watch Gap Up and Down Strategy Video by Arvind Kumar