NIFTY Trading Checklist: Key Steps Before You Place a Trade

Use this quick checklist before trading NIFTY or BANKNIFTY—trend, levels, breadth, catalysts, and risk checks to trade with discipline.

1. Check the broader trend

Open the Markets page. Is NIFTY above or below key moving averages (50/200 DMA)? Is momentum constructive (RSI > 55)? Don't fight the primary trend unless you're scalping.

2. Mark key levels

• Previous day's high, low, and close.
• Weekly and monthly pivots.
• Gap zones or unfilled levels from recent sessions.

3. Check sector breadth

Use the Heatmaps to see if leadership is broad or narrow. If only one or two heavyweights (e.g., RELIANCE, HDFCBANK) are pulling the index, moves may fade quickly.

4. Scan catalysts

Look at the Economic Calendar for global events (Fed, RBI, inflation, jobs data). Check NIFTY news for company/sector-specific drivers.

5. Plan entries & exits

• Define invalidation level (stop-loss).
• Set target zones based on ATR or recent ranges.
• Size positions to risk a fixed % of capital (e.g., 1%).

6. Double-check sentiment

Cross-check with BankNIFTY, USDINR, and global indices (Dow, S&P 500). If global tone is risk-off, be cautious with aggressive long positions.