23 October 2020 (7:40 am IST)
Indian stock markets have traded in a very narrow weekly range in this week. That trend is expected to continue in this last session of a volatile week. Nifty has been moving up and down and mostly closing near the opening levels this whole week.
Today, SGX Nifty is 16 points higher, so we can expect a positive opening in Indian stock markets. After that, the trend will stay range bound within the last three sessions’ trading range.
How To Trade Nifty:
- Yesterday, Nifty traded in a narrow range the whole day.
- It was a sideways trend and good for scalpers, but day traders don’t get much out of such trends.
- To master such sideways trends, day traders should target small profits and trade between clear support and resistance lines created by the price movement.
- This needs strong focus and self discipline.
- That is quite difficult for traders, so it is better to stop trading in such market conditions and wait for a trending day.
- To know how Nifty is going to trade, wait for the first 30 minutes or until 10 am.
- By that time, an intraday trend becomes clear and market volatility subsides.
- That makes trading and trend spotting easy for day traders.
- If the trend is range bound / sideways; cut down on your trading and trade between horizontal support and resistance levels.
- If the trend looks directional (either up or down) then follow the trend line and trade with that.
Indian stock markets are expected to open positive but trade sideways within the weekly range. Market volatility could stay high.