As per the general trend, one should prefer to take a trade in the same direction of the market movement. Although, this is not applicable to all the sectors, as even if Nifty is bullish, some sector might be in consolidation or correction. The longer the trade you’ll take the lesser will be the impact on news on that trade.
There are two trends which make the market move:
a. Global sentiment: The major events in the world like global inflation, global consumption or major international reports, global unemployment data, wars, healthcare news are counted in the global sentiment.
b. Local sentiment: The major events in the nation like national inflation, national regulatory body news, national consumption or major national reports, unemployment data, national revenue collection, national bonds, wars, healthcare news are counted in the local sentiment.
For Intraday trades:
1. You have to track the past day trend in Dow Jones and American markets. Indian and global markets, usually follow the American markets, but doesn’t always hold true. In those cases, the local sentiment prevails the global one.
2. You have to check SGX Nifty 6:30 AM IST and onwards for sometime to know what is the sentiment for the day in the Indian markets. There is a very high chance that the value around which SGX Nifty will be around 9-9:15 AM, the Indian markets will open around the same value. This is the best way you can predict the movement or sentiment of Indian markets.
Note: This is just a presumptive of predicting the starting movement. Although it’s the market sentiment which drives the market for the day.
For Swing & Positional Trades:
There will be not of much impact on swing and positional trades with the global and local sentiment. The better judge will be the technical strategies- Price Action or Demand and Supply.
You have to put the chart on 1hr / 4hr timeframe for the Index for finding the swing trade movement.
You have to put the chart on 1-day timeframe for the Index for finding the positional trade movement.