Indian Stock Markets Today: Range bound Weekly Trend Continues

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:

  1. Yesterday, Nifty traded in a narrow range the whole day.
  2. It was a sideways trend and good for scalpers, but day traders don’t get much out of such trends.
  3. To master such sideways trends, day traders should target small profits and trade between clear support and resistance lines created by the price movement.
  4. This needs strong focus and self discipline.
  5. That is quite difficult for traders, so it is better to stop trading in such market conditions and wait for a trending day.
  6. To know how Nifty is going to trade, wait for the first 30 minutes or until 10 am.
  7. By that time, an intraday trend becomes clear and market volatility subsides.
  8. That makes trading and trend spotting easy for day traders.
  9. If the trend is range bound / sideways; cut down on your trading and trade between horizontal support and resistance levels.
  10. 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.

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World Stock Markets Today: Choppy, Range Bound Intraday Trend

23 October 2020 (7:40 am IST)

22 October 2020 (10:10 pm EDT)

World stock markets are going to continue their choppy, finger chewing -nervous, range bound trend in this last session of the week.

US stock markets closed positive, but US stock futures are red at the time of writing, nervously watching the finals debate between President Trump and former Vice President Joe Biden for the US presidential elections 2020.

In Asia, major markets are trading mixed, just going here and there. SGX Nifty is flat, idly waiting for Indian stock markets to open and take a trend.

How to Trade:

  1. World stock markets are showing slow paced, mixed trend in different markets.
  2. The overall trend, as we had been writing, has turned range bound.
  3. Day traders should trade cautiously and trade with the trend line within minor support and resistance levels.
  4. The trend in markets will remain range bound or negative.
  5. If it is negative, then short sell near resistance levels, continue with the trend line and exit when price breaks the trend line and starts rising.

World stock markets are trading mixed in this session. Sellers have the upper hand, buyers are moving to to sidelines, waiting for the time when the US presidential elections 2020 will get over. Volatility levels will remain high. Day traders must pay attention to money management rules and trade cautiously in such choppy markets conditions.

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Indian Stock Markets Today: Highly Volatile, Range bound Trend

22 October 2020 (8:18 am IST)

Indian stock markets had an extremely volatile intraday trend yesterday. Any day trader, who strictly follows the trend, would have filled gold pots trading both the up and down movements of Nifty. From day’s high (12,018) to day’s low (11,775) marks, Nifty made a drop of almost 250 points and then went up again to erase all losses and closed positive.

This made a big Doji candlestick at top, which is usually a negative signal. Today, global stocks are highly negative, so we can expect another volatile session in Indian stock markets. The range could stay within the high and low points of yesterday’s trading range.

How To Trade Nifty:

  1. Today happens to be the weekly Options expiry session for Nifty and Bank Nifty. It could increase volatility in Indian stock markets.
  2. Nifty has failed to get past 12,000 mark multiple times, but also refuses to create a downtrend.
  3. SGX Nifty is almost flat today, down by only 18 points. This indicates that we can see another volatile but range bound session in Nifty.
  4. Day traders should wait for the first 30 minutes to see what kind of trend is forming in Nifty, then draw a trend line and trade in the direction of the trend line.
  5. Do not forget to put stop loss in all your positions otherwise volatile markets can cause big losses to you in these choppy conditions.

Indian stock markets are expected to open with subdued numbers and trade within the previous range. Negative global trend can put pressure on these markets too.

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World Stock Markets Today: Volatile, Negative Trend

22 October 2020 (7:41 am IST)

21 October 2020 (10:10 pm EDT)

US stock markets traded negative in their overnight session and closed right at the session’s lowest point. That is a negative signal.
For the past two days, Dow Jones had tried to go higher and selling pressure has pushed the index lower before the closing bell. This shows that the buyers are not as optimistic as sellers are.

Today, in Asia session, US and European stock futures are trading highly negative as the US stimulus for Covid-19 again faces political hurdle and the US presidential elections 2020 are getting into murkier waters of Hunter Biden’s scandalous emails. The good thing is, President Trump, who is fighting against Hunter’s father Joe Biden, has kept away from making this scandal a point and is focusing mainly on what he had done for the US and its people during his first term. Results of these elections will be declared on November 3. Until then, US stock markets will continue to stay volatile and anxious, dragging down world stock markets with them.

At this hour, everything is highly negative in world stock markets. All major Asian stock markets are down as IMF lowers the growth forecast for this region. SGX Nifty is slightly negative after yesterday’s roller coaster ride. US stock futures are highly negative and European futures are following this negative trend. Dow Jones futures are almost 200 points down on news reports of Iran and Russia obtaining the US voter data and interfering in the election process with false flag operation of intimidating democrat voters and trying to damage President Trump’s winning chances.

How to Day Trade:

  1. World stock markets follow the trend in US stock futures. Today, these futures are highly negative.
  2. As a result Asia markets are also trading negative and European stock markets are also expected to start with gap down openings.
  3. This is a clear downtrend in global stocks and day traders should follow the trading strategies to tackle a downtrend.
  4. This will involve, use trend line or Moving Averages (9-days on bigger timeframe, 20-days on smaller timeframe) and sell when price turns down after coming close to touching these indicators.
  5. Since it is a strong trend, one can let their short positions run with the trend line on bigger timeframes (30-minutes, one hour) to accumulate profits.
  6. These volatile market conditions are good for day trading but not so good for positional trading because the trend changes every day.

World stock markets are trading negative in this session. US stock futures are highly negative, dominating the global trend. If these numbers continue to drop, we can expect a bigger downtrend in world stock markets.

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Indian Stock Markets Today: Range bound trend, Narrow Range

21 October 2020 (8:20 am IST)

Indian stock markets, especially Nifty has been trading in a very, very narrow range.

Yesterday, Nifty went up to touch 11,950 and it looked like the index will easily cross 12,000 mark. But then, it stopped and lost most of its gains to close just below the 11,900 mark.

On weekly charts, Nifty is making a tiny shadow. But it is also making a “higher low” pattern on these charts, which signal its readiness to rally with global stocks if it happens in the coming weeks.

How To Trade Nifty:

  1. With its narrow range, Nifty is giving fewer opportunity to day traders.
  2. It is also testing the patience of day traders.
  3. The bad thing about such a narrow range bound trend is; day traders don’t get bigger profits.
  4. The best thing about such narrow range bound markets is, when the range is broken, a big trend follows.
  5. It can be in any direction; up or down but that trend gives ample opportunity to day traders for booking big profits.
  6. So, wait for that trend in Nifty and cut down your trading in the current sideways trend.
  7. Until then, use hourly charts for support and resistance and trade between those levels using 5-minute charts.

Indian stock markets are expected to open with a gap up but trade range bound as the major resistance of 12,000 will keep Nifty under pressure.

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World Stock Markets Today: Rangebound, Volatile Intraday Trend

21 October 2020 (7:48 am IST)

20 October 2020 (10:17 pm EDT)

US stock markets had a positive closing in their overnight session, but the intraday trend was highly volatile, giving day traders profit making opportunities in both the up and down directions.

If you check the 5-minute chart of Dow Jones, you will find two clear trend lines; the first one starting with the second candlestick of the chart, going to the day’s high (bullish). There, price breaks the trend line and starts falling and a new trend line can be drawn; this time downwards. Near the session’s end, price becomes range bound and breaks the second trend line. End of the second (bearish) trade. exit from markets.

This was a classic example pf trading with the help of trend line. Please check the chart and see for yourself how this trade played out with tow profitable trades; one bullish and another bearish.

It also confirms the increasing volatility in US stock markets as the US presidential elections 2020 come closer. Right now, President Donald Trump is receiving huge crowd support in his packed rallies; while his opponent, former Vice President Joe Biden is keeping quite in the face of a big email scandal involving his son; Hunter Biden. This new turn of events is making US stock markets more than usually nervous.

Although, if you check the weekly charts of major US indexes, you’ll find that these indexes and trading on the upper side of the last two week’s trading range.

The same trading pattern is appearing in other major indexes of world stock markets. This looks like as if global stocks are ready to rally, with one foot on the starting line.

World stock markets are excited with the positive closing in US stock markets’ and are trading positive in different regions.

Almost all major Asian stock markets are trading positive at the time of writing. Only Shanghai index is down, but that too with minor numbers. SGX Nifty is 34 points up, hinting at a gap up opening for Indian stock markets.

US and European stock futures are highly positive, leading the positive trend in world stock markets.

How To Day Trade:

  1. World stock markets have become range bound within the last two week’s trading range.
  2. The bias is positive, in spite of some big drops in between.
  3. Day traders should take advantage of market volatility and trade with the short term trend line.
  4. This also means that they should trade only 2-3 times, with fewer lots and wait for a strong trending day when markets will have one trend through the session.
  5. A trend line will be very useful in showing this trend.
  6. Use trading strategies of range bound markets currently.
  7. This will involve using horizontal support and resistance levels. These lines can be draw using 5-hours and hourly charts.
  8. Buy at support and sell at resistance.

World stock markets have turned range bound and trading within the weekly range. Markets are highly volatile which is good for day trading. But a range bound markets is the worst thing for positional trading so stay away from taking overnight positions in these market conditions.

 

 

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Indian Stock Markets Today: Lower Trend on Global Cues

20 October 2020 (8.05 am IST)

Yesterday, Indian stock markets traded in a narrow range. Nifty’s range was so small that it was better to not trade this index and wait for a bigger trading range to appear.


Despite more than 100 points’ gains, Nifty stayed in a small range, which can be seen in hourly charts. Today, world stock markets are trading negative and we can expect Indian stock markets to trade lower, within the last two sessions’ range.

How To Trade Nifty:

  1. For day traders, it would be good to keep watching Nifty’s daily chart.
  2. If the index again makes a small, ant- like trading range, then do not trade and save your trading capital for trending days.
  3. SGX Nifty is down by 36 points, indicating a lower opening in Nifty.
  4. If Nifty falls below yesterday’s low mark, we can expect more losses in the index and a chance to short sell the index.
  5. For this, let Nifty open and create a “lower high” pattern, which will confirm the downtrend.
  6. That would be the ideal time to open short positions. After that, follow the trend line and exit when trend line is broken.

Indian stock markets are in a minor downtrend since Nov 15, when Nifty had a big drop of almost 400 points from day’s high to day’s low mark. That had made a big “engulfing bearish” candlestick and Nifty is still trading in the shadow of that. Yesterday, Nifty faced strong resistance at 11,900. That resistance will stay in place and day traders should watch if Nifty’s resistance levels continue to come down, putting pressure on Nifty and broader Indian stock markets.



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World Stock Markets Today: Choppy, In a Minor Downtrend

20 October 2020 (7:38 am IST)

19 October 2020 (10:08 pm EDT)

US stock markets crashed in their overnight session, even though a covid-19 stimulus talks are going on. Major indexes dropped by big numbers. Dow Jones lost more than 400 points and Nasdaq closed with a loss of almost 200 points.

We had recently talked about the weekly chart of Dow Jones, where the index was creating a “double top” formation, which usually indicates a lower trend. Yesterday, Dow Jones created a big “double top” on its daily charts too. We can expect a minor downtrend in this index in the near future.

World stock markets are trading negative in Asia session, following the fall in US stock markets. All major Asian stock markets are trading in the red. SGX Nifty is down by 25 points, indicating a subdued opening for Indian stock markets too.

European stock futures are showing single digit gains. US stock futures are positive, which was expected after the previous fall. But, we saw on Monday that in spite of highly positive futures, US stock crashed after the opening bell. Also, the weekly trend has become highly negative for US markets. So, day traders should not trust these green numbers too much.

How To Day Trade:

  1. World stock markets will stay choppy and highly volatile as long as the US presidential elections 2020 will remain under way.
  2. This is definitely NOT the time for positional trading.
  3. Do day trading and at the end of the session, exit all your positions.
  4. Even intraday session could stay highly volatile, so it would be better to wait for a clean, trending phase and trade only during that time.
  5. For today’s day trading, the best strategy would be to focus on your local markets and its trend, which is expected to be negative.
  6. Keep checking the trend line, When you can draw a smooth trend line in 5-minutes’ chart, follow that trend line and trade as long as price follows it.
  7. Exit when price breaks the trend line.

World stock markets are following the negative minor trend in US stock markets and trading mostly negative. Although US stock futures are trading positive, global stocks are ignoring those numbers after major US indexes had a major fall in their overnight session.

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Indian Stock Markets Today: High Open, Range bound Trend

19 October 2020 (8:10 am IST)

For Indian stock markets, their weekly charts will provide important clues for trading this week.

SGX Nifty is 60 points higher at the time of writing, which is a very positive signal on daily charts. But, weekly charts show an opening within the big shadow of last week, when this index had crashed with Nifty and broader Indian stock markets.

This is why day traders must watch how Nifty trades after a gap up opening, and only then decide on their day trading strategy.

How To Trade Nifty:

  1. As we know, Nifty is facing strong resistance near 12,000 mark.
  2. A gap up opening will take Nifty closer to a minor resistance of 11,834.
  3. If Nifty crosses above this minor resistance, then it will face the major resistance of 12k.
  4. The minor trend is positive so day traders should wait for Nifty to cool down a bit.
  5. For taking long positions,  it will be a good time when price rises after taking a dip.
  6. Gap up opening could create a smaller range for Nifty. Trade between the opening level and higher resistance marks.

Indian stock markets are expected to open with a gap up and turn range bound after that. The trading range will stay within the last week’s high and low levels.

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World Stock Markets Today: US Stimulus Hopes, Week Opens with Gap Up

19 October 2020 (7:42 am IST)

18 October 2020 (10:12 pm EDT)

World stock markets are rallying at the start of a new week. We expect this rally to continue through the weekly session.

During the weekend, the US Senate Majority Leader Mitch McConnell informed that the Senate will vote on $500 billion coronavirus stimulus package on Wednesday. There are also talks of a tax cut measure for small businesses.

As expected, US stock futures are rallying with big numbers at the start of the Asia session. Dow Jones futures are up by more than 150 points. Nasdaq futures have gained more than 100 points. These high numbers have provided support to a rally in global stocks. At the time of writing, every major index is trading high with solid gains.

All major Asian stock markets are up by 1% gains or near about. SGX Nifty is 70npointas higher, indicating a gap up opening in Indian stock markets. European stock futures are also rallying with US futures. If US stock futures stay high through the global session, the intraday trend in world stock markets will also follow that higher lead. That will also helped a gap up opening in US stock markets and the major US indexes will recover some of their last week’s losses and turn range bound within the last week’s trading range.

However, we all know what will happen  if US stock futures turned lower and pared their gains. World stock markets will also lose their gains and reverse their trend.

Let’s hope that does not happen and we get at least two days’ up trend in world stock markets. On Wednesday, we can expect a choppy and subdued trading in global stocks.

We ‘ll talk about that when it comes to pass. Right now, its a jump start in world stock markets and day traders can expect to make some profits by following the minor uptrend.

How To Day Trade:

  1. We are witnessing a minor uptrend in world stock markets.
  2. It also the start of a new week, which makes it a daily and weekly uptrend.
  3. For day trading, positive trading strategies will be beneficial for day traders.
  4. These will involve buying at dip (near support).
  5. For this, draw a trend line on 15- minutes or 30- minutes charts and then, watch this trend line in 5-miutes time frame.
  6. When price touches the trend line and bounce up again, that will be the right moment to take long positions.
  7. Exit and book profits when the rising price dips and breaks the trend line instead of bouncing back.

World stock markets are trading positive on US stimulus hopes. We expect this trend to continue at least until the mid-week when the US senate will vote on the stimulus bill.

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