How to “Buy Dips” and “Sell Rallies”?

How to catch Dips and Rise for successful day trading in NSE Stock Market. In Intraday trading On Business Channels, Most of the technical & fundamental analyst advise us buy the dip and sell the rally in all nse stocks, NIFTY Index and in Bank nifty Index.

Though they advise us to buy on dips and sell on rise, they will never teach us how actually do the same in live market.

We have tried to explain this important intraday strategy for day traders in this small article.

Buy on Dips, Sell on Rally Strategy

Firstly we suggest you to don't start trading immediately when market opens. Wait for Nse Stock market to settle i.e wait for 15-20 mins. Indian Nse market opens at 09:15 for trading. We suggest you to keep watching the market till 09:30 a.m. The First thing you should do it to know the trend of the market.

Market may go up, go down or it can play side ways too. If its playing side ways, take a decision not to trade, till the trend change happens for the day. Intraday traders should never trade against the market trend unless they think that a trend reversal can happen in some time. They can happen if any important global event or domestic news that can impact the sentiments of the traders trading in the share market.

If market is in Bullish trend, try to Buy first and sell later in a day. Same way if market is in Bearish trend, trader should short sell first and put cover buy order later to make money.

Every stock when it falls, it has support levels, a trader should look for support levels to buy this stock at lower prices. Same way a Stock has a Resistance levels i.e stock will not move about a certain level. Traders should sell at this levels to make money.

After a significant dip in the price of a security or stock index, investors should increase position's by buying some more stocks, this is call buy on dips. If the stock moves higher in some days, the investor/trader can sell some or all of his equity investment is call sell on rally. Again if market corrects or again if market dip's, he can buy again to sell at higher rates.

Some Intraday traders trade in only Nifty and Banknifty index. There are also some traders who trade in Options Segment - Nifty / Bank Nifty Options. We suggest you to first check support and resistance levels of Nifty on our website and trade accordingly. We have recommended Daily 5 bullish stock and 5 bearish stock for intraday trading for free for benefit of day traders in india.

We request Intraday traders to place a stop loss order immediately after placing a buy or sell order in nse market.