Most of the times nifty moves around 50 points up or down. But on some days it moves about 100 points up or down. And a large downwards or upwards movement occurs in market. But these very very large movements in a single day is not normal.
I want to ask what causes these type of huge movements in the market i.e. some news, some incident or any other factor.
Please tell which type of news/incident can be the cause of very very large movements in the markets.
So that we can plan our trades before the market opening and take advantage of that.
Watch pulse.zerodha.com and look for news on global markets, SGX, Nikkei, Dow Jones etc and see how other markets have done. Watch out for major commodities like crude oil etc., Federal Reserve Meeting outcomes, Interest rate hike news, etc., If globally the performance is poor, most likely Nifty will do poor. This is what my observation.
More will flow upon answers from others. Good Luck!
Large moves can be understood in two ways 1) News 2) Technical analysis(TA) .
News i.e events like to day TCS results are not as per expectation so the stock fallen more than 8%. if you are interested in news watch the news most of the intraday moments are news driven. For short term player news is very imp.
TA :- 1) Trend analysis 2) Advance analysts
Trend analysis is simple use 20 period moving average if prices are above 20 period moving average then the trend is up if not down. Here predection is not possibe.
Advanced analysis
a) Using indicators .
b) Wave theory.
It require skill and at least five years experience in advace anlasys.