Indian Stock Markets Today: Nifty Faces Resistance, Range bound Trend

18 September 2020 (8:15 am IST)

SGX Nifty is trading 22 points higher at the time of writing, indicating that Nifty and broader Indian stock markets may stay range bound and trade positive within yesterday’s negative trading range.

Like other markets, Indian stock markets have also been range bound since the last two weeks, but in a smaller range.

How To Trade Nifty:

  1. Nifty has been trading up and down in a single candlestick range.
  2. Yesterday, this index closed negative so we can expect it to trade positive today.
  3. However, the fact that Nifty closed at the day’s lowest levels, should be kept in mind and day traders must wait to see if Nifty recovers from yesterday’s low levels or not.
  4. For day trading strategy in Nifty, the first one would be to treat its trend as range bound. This means trade between yesterday’s high and low levels.
  5. Second Nifty trading strategy would be to see if it starts trending in one direction; up or down. In that case, day traders should follow and trade with the trend line.

SGX Nifty is indicating a slightly positive opening in Indian stock markets today. that is expected to keep these markets in a sideways trend. For day trading, use the upper and lower levels of the current range in different stock indexes or stocks and trade within those levels.

Posted in Global Stock Markets | Tagged , , , , , , , | Leave a comment

World Stock Markets Today: Mixed, Volatile Day Trend

18 September 2020 (7:50 am IST)

17 September 2020 (10:20 pm EDT)

This is the last session of this week and world stock markets have started it with a mixed and volatile day trend.

US stock markets closed negative in their overnight session, but keeping within their current trading range. Nasdaq opened highly negative and closed in a better position, thus creating a “positive hammer candlestick” at its range bottom. As the index is tightly range bound, we may see it trading positive next week, to return to its range top.

At this hour, US stock futures are trading negative, but not with much higher numbers. We are expecting these futures to improve later in the session as the current trend in US stock markets is range bound and major indexes are not expected to fall further.

In Asia, major stock markets are trading mixed, but mostly positive. SGX Nifty is also trading positive today, with minor gains.

How To Day Trade:

  1. Looking at the various parts of world stock markets, it is clear that there is no single trend in global stocks.
  2. For day trading, the best strategy would be to follow the local trend, and keeping stop loss in all positions to safeguard against the global volatility.
  3. All three trend; up, down and range bound are visible in different markets today. Day traders should pick the strategy that will suit the trend in their local stock markets.

World stock markets are opened to a volatile and mixed trend, but the bias is mostly positive. If US stock futures turn positive later in the session, we may see a similar effect on global stocks. However, a bigger slide in those futures could put selling pressure on world stock markets.

Posted in Global Stock Markets | Tagged , , , , , , | Leave a comment

Indian Stock Markets Today: How Low Nifty Will Open?

17 September 2020 (8:50 am IST)

SGX Nifty is trading down today, falling more than 100 points with US stock futures.

This indicates that Indian stock markets will also open negative. But the trend in Indian stock markets will depend on how low Nifty will open? We have seen in recent weeks that some times Nifty does not exactly follow the SGX Nifty. If that happens, then we may see a not-so-deep-drop in Nifty and broader Indian stock markets.

How To Trade Nifty:

  1. Nifty has been trading in a straight line, in a range bound trend and yesterday, this index traded in an intraday uptrend to close above 11,600.
  2. This gave an indication of breaking out of the current range for this index.
  3. However, if Nifty also opens with deep cuts today, it will reach the support levels of its current range and rise after the initial loss.
  4. For day trading in Nifty, traders must wait until the opening volatility in over, and watch what kind of intraday trend Nifty creates.
  5. If the index has big gap down opening, it will remain range bound within this week’s trading range.
  6. If Nifty opens with small cut and stabilizes quickly to rise up, then we may see another session of uptrend in Nifty, as we saw yesterday.

Indian stock markets are set to open negative on global cues. These markets have been range bound after a correction and have been rising from support levels in the last few sessions. Either that rise will continue after a lower opening, or major indexes will trade negative through the session with the global trend.

Posted in Indian Stock Market | Tagged , , , , , , | Leave a comment

World Stock Markets Today: Negative Start, Range bound Trend

17 September 2020 (8:11 am IST)

16 September 2020 (10:40 pm EDT)

World stock markets have started this session with negative numbers as US stock markets had a mixed closing and US stock futures suddenly dipped an hour ago into deep negative territory.

Yesterday, in our technical trend analysis of US stock markets, we had said that these markets are range bound. True to that, US stock markets traded with high volatility and had a mixed closing.

Nasdaq Trend : The biggest loser was Nasdaq, as expected because this tech index is trading in a strict range of 11,300- 10,700. You can draw a box encompassing these levels and see how price stays within that box. After hitting the range resistance, Nasdaq turned lower and traded towards the support level. Now, this index may, or may not continue towards the range support level because RSI indicator is making a “higher low” pattern, indicating that a trend reversal could take in Nasdaq.

How To Trade Nasdaq:

  1. As US stock futures have turned highly negative, we can expect a lower opening in US stock markets on Thursday.
  2. If that happens, then we may see markets rising after a lo opening because there is no negative news (at this hour) to push Nasdaq below its range support.
  3. So, draw a box between its current support and resistance levels (11,300- 10,700) and sit back to see which way the short term trend goes.
  4. Just follow that trend and make money in US stock markets.
  5. Also, pay attention to the monthly candlestick chart of Nasdaq.The last two monthly candlesticks on Nasdaq charts are identical in size. The previous one was positive and the current one is negative. Therefore, the next month’s candlestick can turn positive (buying signal) or negative (selling signal).
  6. At the same time, if the index breaks out of its “box” range on daily charts, it will be a buying signal. And if Nasdaq breaks down the lower support of its range “box”, it will be a selling signal.

US Stock Markets News: The Federal Reserve declared intention of keeping its interest rates low for at least 3 more years to help the economy. Usually, US stock markets welcome such dovish action from the central bank with big rallies. But currently, US stock markets are in a sideways trend so after initial jump, major US stock indexes turned down to close mixed.

Asia Stock Markets : As expected, Asian stock markets opened with negative numbers after a subdued closing in US stock markets. At the time of writing, all major Asian stock markets are trading negative.

SGX Nifty Today: SGX Nifty was flat till an hour ago, but the sudden drop in US stock futures jolted this futures index on India’s Nifty, and SGX Nifty fell with a thud to trade lower by almost 100 points. This indicates a lower opening for Indian stock markets today.

How To Day Trade: In these highly negative and volatile environment, how do you day trade?

  1. First, do not jump in markets as soon as the opening bell rings, especially if markets are opening with big losses.
  2. This will take RSI into oversold zone and attract buyers.
  3. That means, after the opening loss, markets will rise sooner or later.
  4. Wait and watch when markets get saturated with buying and again turn low from a resistance level.
  5. That will be a selling indication and bears will come back to beat markets again.
  6. Join them, follow the trend line and trend with the negative trend.
  7. Do NOT forget to keep a stop loss in all your open position to save your money from volatility risks.

World stock markets are trading highly negative in the early hours. US and European stock futures dropped like a stone an hour ago. Dow Jones futures are down by more than 200 points, which will keep global stocks under pressure. Overall, it is a sideways trend in world stock markets and we may continue to see positive and negative trends on alternate days this week.

 

Posted in Global Stock Markets | Tagged , , , , , , | Leave a comment

Indian Stock Markets Today: Range bound Trend in Nifty, Bank Nifty

16 September 2020 (7:56 am IST)

Indian stock markets have become range bound since the last week. Nifty and Bank Nifty both are trading in a range but their range sizes are not similar. Nifty has been trading in narrow trading range while Bank Nifty’r trading range has been comparatively large.

Today, SGX Nifty is showing negative numbers, indicating that we may see a negative opening in Indian stock markets.

How To Trade Nifty:

  1. A look at Nifty’s technical chart shows that the index is trading in a narrow range.
  2. Nifty’s chart analysis shows buy signal in major time frames.
  3. However, day traders should remember the levels we had discussed yesterday, which are keeping Nifty in a range.
  4. The index faces resistance between 11,500- 11,550 and support between 11,400- 11,450. This creates a fixed range and Nifty has been trading up and down in this range.
  5. Today, the trend is world stock markets is positive, but not strong. This can keep Nifty in a narrow range, within the weekly high and low levels.
  6. Day traders must wait for Nifty to catch a bigger trend because that will bring more profits for them.
  7. Day trading in narrow range can eat into your trading capital, so make your strategy beforehand when and where you will trade.
  8. If Nifty continues to trade in a narrow range, then trade only once or twice, cut down in your lot size and leave markets as soon as you have hit a profit, no matter how small.

Indian stock markets are expected to open and trade within their weekly range in today’s session. Nifty and Bank Nifty will have their weekly Options expiry session tomorrow. So today or tomorrow, we can expect a bigger trading range in these markets, which will be beneficial for day trading.

Posted in Indian Stock Market | Tagged , , , , , , | Leave a comment

World Stock Markets Today: Trend Turns Range bound, Choppy

16 September 2020 (7:56 am IST)

15 September 2020 (10:26 pm EDT)

World stock markets are showing a positive, but choppy trend today. Here is the technical analysis of what is happening in different parts of world stock markets:

US stock markets closed with positive numbers in their overnight session. But, gains for Dow Jones and S&P 500 were very limited while Nasdaq continued it up trend within a small, weekly range.

Technical Trend Analysis of US Stock Markets: US stock markets have been very choppy in the last three weeks.

  1. major stock index have become range bound and trading in 2-days up, then 2-day down kind of trend.
  2. With this week’s early rally, these indexes have reached their current range top. Nasdaq has recovered almost all its losses from the previous week.
  3. Since major indexes are now trading almost at their small, lower range top day traders should be cautious about a sideways or lower trend.

Asian stock markets trading today : Asian stock markets are mostly trading positive. The main news from Asian stock markets is about Japan’s export numbers that have fallen almost 15% YoY basis. However, Nikkei is still trading positive and only the Shanghai index is trading negative in Asia markets.

SGX Nifty Today: Surprisingly, SGX Nifty is trading negative in early trading today. At the time of writing, this futures index of Nifty is about 35 points down, indicating a subdued opening for Indian stock markets.

US stock futures: US stock futures are trading positive with small gains at this hour. This again reinforces a short term range bound trend for US stock markets. European stocks are following the trend of US futures.

How To Day Trade:

  1. Like previous couple of weeks, the trend in US stock markets and US stock futures will continue to dominate world stock markets.
  2. These markets are trading in a range and global stocks are following that range bound trend.
  3. For day trading, strategies should be created keeping this sideways trend in mind.
  4. Major support and resistance levels (long term Fibonacci and daily pivot levels) will play crucial role in providing trade entry and exit points.
  5. Day traders should cut down on the numbers of their trades and look for small profits within the trading range of their markets.

World stock markets have opened this session with positive numbers. But the trend is sideways and is expected to stay choppy in different regional markets.

Posted in Global Stock Markets | Tagged , , , , , , , | Leave a comment

Indian Stock Markets Today: Resistance Keeps Nifty’s Trend Range bound

15 September 2020 (8:05 am IST)

In yesterday’s session, Indian stock markets opened high, but could not sustain that momentum and fell in the last hour to close negative. Nifty closed again at 11,450, where it has been closing for the past two sessions too.

If you have been reading our post for a few months, you will remember that Nifty had found a strong resistance at 11,375. This level has now become a support for the index and 11,500- 11,550 has become a resistance, which is keeping Nifty’s trend range bound. Today also, SGX Nifty is trading positive, indicating that Nifty will open within yesterday’s trading range.

How To Trade Nifty: For Indian stock markets Nifty (or Nifty 50) is the trend deciding index. That’s why traders give it much importance.

  1. Yesterday, Nifty opened with good gains and stayed range bound in the early trade. But then, the index broke the trend line on hourly charts.
  2. Technical analysis of Nifty’s chart shows that the RSI had reached the overbought zone in the same time frame. Both these factors brought more sellers to Nifty than buyers and we saw a big slide in the index within a few minutes.
  3. Although Nifty recovered in the closing minutes to close at 11,440, but it has refused to go higher in the last many sessions, showing selling pressure at higher levels.
  4. For day trading in Nifty, traders should make it a habit to wait and watch how this index trades in the first hour. That will give them an idea of Nifty’s direction.
  5. Once you know how Nifty is trading, you can easily follow that trend and trade with the trend line.
  6. Watch the trend in bigger time frames and then trade in the smaller time frames for day trading.
  7. If you are a positional trader, then check weekly and monthly time frames and trade based on daily trend.

Indian stock markets have become range bound, with a weak trend. Intraday volatility is very high in these markets on negative economic reports. SGX Nifty is indicating a positive opening for Indian stock markets today. That will keep these markets range bound within the last week’s trading range.

Posted in Indian Stock Market | Tagged , , , , , , , | Leave a comment

World Stock Markets Today: Mixed, Volatile Trend for Day Trading

15 September 2020 (8:05 amIST)

14 September 2020 (10:35 pm EDT)

US stock markets rallied in their overnight session. Nasdaq, as we had been telling our readers, jumped from its bottom and rallied 200 points. Tech stocks Tesla (Nasdaq: TSLA) and Apple (Nasdaq: AAPL) were among the biggest gainers of the day.

US stock futures are mildly positive in the Asia session. European stock futures are following their trend.

In Asia, all major stock markets are trading positive except Japan, where the main index Nikkei is down by more than 100 points at the time of writing.

SGX Nifty is marginally positive, up by only 24 points, indicating a flat to positive opening in Indian stock markets.

How To Day Trade: World stock markets are following the trend in US stock markets.

  1. The overnight rally in those markets have provided a positive opening for global stocks. However, if US stock futures become negative for any reason, we could see an increase of volatility in world stock markets.
  2. The good thing is, US stock markets have become range bound at their current levels. This fact provides support to world stock markets.
  3. For day trading strategies, this means that day traders should look out for buying opportunities in this session and then follow the trend line to let their profits run.
  4. We would urge our readers (particularly those who have not read our post about Nasdaq’s turn around and RSI’s role in that), to go back and read that post. It will show you how RSI can be used to call out bottom without being in the oversold zone.
  5. In Nasdaq, RSI made a double bottom on daily charts and indicated a trend reversal.
  6. Day traders can use the RSI indicator in different time frame in the same way and find out when a trend reversal is imminent.
  7. For today’s session, day traders should wait for their local index to dip, then rise. That bounce will be the best place to open a long trade. Don’t forget the money management rule no.1 of keeping a stop loss in all your open trade.

World stock markets are trading mostly positive. US stock futures are mildly positive, hinting at a range bound trading pattern. If these numbers stay positive, we can expect a positive session in world stock markets. If US futures turn negative later in the session, global stock may follow that trend too.

Posted in Global Stock Markets | Tagged , , , , , , , | Leave a comment

Indian Stock Markets Today: Range Bound, Volatile Session

14 September 2020 (8:39 am IST)

Indian stock markets had traded in a flat trend in the closing session of the last week.

Today also, SGX Nifty is positive but not with much higher gains. This hints at a positive opening for Nifty and broader Indian stock markets, but not too high.


How to Trade Nifty: Nifty had traded in a narrow range in its last session.

  1. If that narrow range continues, then day traders should not trade in Nifty and wait for a trending day for bigger profits.
  2. How will you know when it is range bound and when it is trending day? Simple. You just wait for the first hour after the opening bell and see what support and resistance levels emerge in Nifty. If the index continues to trade within those levels, it will be a range bound trend. However, if Nifty breaks any of those levels and continue to trade in one direction afterwards, it will be trending session and profit-making possibilities will be good for day traders.
  3. So, wait after the opening bell today, and see if Nifty creates a “higher low” (uptrend) or “lower high” (downtrend) pattern, then trade with the trend line in that directions.
  4. If, however, Nifty makers same high and same lower levels, then it will be a sideways or range bound trend, which is a major cause of losses for small traders and not worthy of trading.

Indian stock markets are expected to open positive. After that, the trend will depend on Nifty. If this index starts climbing towards higher levels, we can expect an intraday uptrend in Indian stock markets. Otherwise, it will be another range bound session in these markets.



Posted in Indian Stock Market | Tagged , , , , , , , | Leave a comment

World Stock Markets Today: Positive Wave All around

14 September 2020 (8:39 am IST)

13 September 2020 (11:06 pm EDT)

A new week has started in world stock markets with an all around positive wave.

US stock futures are trading with highly positive numbers. Futures of Dow Jones are almost 300 points up at this hour. European stock futures are also positive.

This has enthused Asian stock markets and all major markets are positive in Asia.

SGX Nifty is 33 points up, indicating a positive opening for Indian stock markets.

How To Day Trade: In the last couple of weeks, we saw a technical correction in US stock markets, which kept world stock markets volatile too.

  1. Now, green shoots are emerging in major US indexes, which indicate that time for a rebound is close for these indexes and therefore, in broader US stock markets.
  2. We have already discussed these technical signal for Nasdaq and today’s positive open shows that big traders are also paying attention to those signals and getting ready to buy.
  3. Any trend change in US stock markets will lead a similar change in global markets. US stock futures are rallying in Asia session and all other markets are following that rally.
  4. It is a clear positive trend at this time. So, Day traders should watch for buying opportunity in their local markets, if their markets are also positive.
  5. If any market is trading positive but range bound, then watch the upper and lower lines (resistance and support levels) and trade within those levels.

World stock markets have opened with highly positive numbers in this session, following early rallies in US stock futures. If these futures continue to trade high, we can expect a session-long positive trend in world stock markets.

Posted in Global Stock Markets | Tagged , , , , , , | Leave a comment