- Global Market Cues
Global sentiment plays a huge role in how Indian indices like the Nifty 50 and Sensex move at the open.
- US Market Performance: How did the Dow Jones, S&P 500, and Nasdaq close? A strong or weak US session often trickles into Asian markets.
- Asian Markets in Early Trade: Keep an eye on indices like the Nikkei (Japan), Hang Seng (Hong Kong), and Shanghai Composite.
- Gift Nifty: Traded in Singapore, this futures contract often indicates how the Nifty might open.
Tip: Gift Nifty is not always 100% accurate, but it gives a ballpark estimate of the market sentiment.
- Currency & Commodity Watch
- USD/INR: A weakening rupee can impact import-heavy companies (like oil and gas), while a strengthening rupee benefits those importing goods or services.
- Crude Oil Prices: India imports over 80% of its oil — any major overnight movement in Brent or WTI crude can impact energy, aviation, and inflation-sensitive sectors.
- Gold & Silver: Precious metals affect sentiment around inflation and safe-haven demand.
- Domestic News & Government Policy
Any major government announcement or policy change after market hours can lead to a gap-up or gap-down opening.
- RBI Updates: Interest rate decisions, inflation data (CPI, WPI), and other monetary cues.
- Corporate Earnings: If it’s earnings season, keep track of major results released post-market or over the weekend.
- FII/DII Activity: Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) can sway market direction based on buying/selling volumes.
- Stock-Specific Developments
- Mergers, acquisitions, board changes, insider buying/selling, large orders, or any regulatory issues can lead to significant stock-specific movements.
- Pre-open announcements by companies (usually around 8:30–9:00 AM) can include updates on fundraising, stake sales, project wins, etc.
Pro Tip: Set alerts or follow trusted financial news sources early in the day to catch these quickly.
- Derivatives & Technical Indicators
- OI (Open Interest): A spike in OI with price movements in futures can help identify where the smart money is flowing.
- Put-Call Ratio: Indicates the market’s sentiment — bullish or bearish.
- Key Technical Levels: Support/resistance zones for Nifty, Bank Nifty, and major stocks. Many traders adjust strategies based on these.
- Economic Calendar & Global Events
A scheduled Fed meeting, inflation data release, job numbers, or geopolitical tensions can heavily influence markets.
Always check:
- Domestic: RBI events, inflation/GDP/IIP data
- Global: US Fed meeting dates, ECB, BoE announcements, China data releases
Final Thoughts: Start With a Plan
Don’t just react — be prepared. Having a morning routine helps you stay sharp, avoid panic, and make informed decisions.
Summary Checklist Before Market Opens:
- Global market performance (US, Asia, Gift Nifty)
- Crude, currency, gold/silver prices
- Domestic policy, macro data, FII/DII flow
- Company-specific news & earnings
- Derivatives, OI, technicals.
- Economic calendar
Whether you’re placing your trades at the open or simply watching from the sidelines, knowing these key things before markets open gives you a solid edge. The better your prep, the smarter your moves.
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