25 January 2021 (8:40 am IST)
SGX Nifty is trading more than 100 points higher with global cues. This indicates a similar gap up opening for Indian stock markets. These markets have been trading in a bigger range since the last two weeks and this week could also stay in the same range.
Since SGX Nifty is following the global cues, any change in those cues will change the trend in SGX Nifty and Indian stock markets too.
How To Trade Nifty:
- This index has been trading rangebound with two days up and two days down pattern.
- Today’s higher opening will take Nifty back to its resistance levels and that may put pressure on the index.
- Pressure on Bank Nifty (due to regulation of NBFCs) may cause Nifty to stay rangebound or even trade lower after a positive opening.
- Day traders should watch previous resistance levels and how Nifty trades near those levels.
- If Nifty is unable to cross above those levels, it will mean “selling at high” trading strategy would work for Nifty.
- Nifty may stay highly volatile like previous weeks and trade rangebound within the last week’s trading range.
Indian stock markets are expected to open with positive numbers but trade rangebound and stay volatile. Day traders must use money management techniques such as putting stop loss to keep their trading capital safe from big losses.
25 January 2021 (8:25 am IST)
24 January 2021 (9:54 pm EST)
A week’s start always signals what kind of trend we can expect through that week. World stock markets have started a new week with positive numbers in the opening session in Asia.
All major Asian stock markets are trading positive at the time of writing. SGX Nifty is more than 100 points up. US and European stock futures are also trading up with considerable margins.
Last Friday, US stock markets had closed with highly negative numbers and it looked like we may see a negative opening this week. But US stock futures have turned positive and world stock markets have quickly forgotten that negative closing in US stocks.
How To Day Trade:
- A positive start is keeping world stock markets range bound within the last few sessions.
- This would mean checking support as well as resistance levels for day trading.
- A higher opening is not always a signal of higher closing also.
- Sometime markets open up and close down instead of continuing the higher opening trend.
- Therefore, day traders should watch if resistance levels stop their local markets from continuing the early uptrend?
- If that happens, then it would stay a rangebound trend.
- If not, then it will convert into an uptrend through the session.
- Use hourly support and resistance levels for intraday trading.
- Put a stop loss for effective money management and protect your trades from markets’ volatility.
World stock markets are trading positive in the opening hours of trading in Asia. This trend is expected to continue through the session and keep markets rangebound.
22 January 2021 (8:23 am IST)
Just when it looked like Indian stock markets will scale new highs, these markets fell sharply with negative global cues.
Today, SGX Nifty is indicating a lower opening. This will keep Indian stocks within this week’s range, but there is risk of these markets falling to the low levels of this week.
How to Trade Nifty:
- This index has made a “double top” candlestick formation on daily charts, which is a negative signal.
- Yesterday also, Nifty easily fell below the support level of 14,600 and closed below it.
- Today’s low opening will take Nifty towards the lower point of yesterday; near 14,500 mark.
- Day traders should wait after a gap down opening and watch if Nifty finds support at lower levels.
- A small recovery may come after the gap down opening.
- If Nifty again starts falling after the early recovery, then it will indicate resistance and opening short trade from that point will be a profitable trading strategy.
- On daily charts, watch the 9-day Moving Average, which will either act as a support or resistance.
- That will decide how Nifty will trade in weeks to come.
Indian stock markets are set for a gap down opening. Yesterday these markets had a sharp fall in the second half. Today’s lower opening will increase the losses and could signal the onset of a downtrend with global markets.
22 January 2021 (8:04 am IST)
21 January 2021 (9:34 pm EST)
World stock markets are trading negative in the Asia session today. This keeps with the range bound trend in global markets.
US stock markets had closed mixed in their overnight session, with thin margins. SU stock futures are trading highly negative at this hour, putting pressure on world stock markets.
At the time of writing, US and European stock futures are highly negative. Major Asian stock markets are trading negative too. SGX Nifty is 54 points down, continuing with the previous negative closing. This shows that Indian stock markets will also open lower with a gap down.
How To Day Trade:
- At the time of writing, the global trend is negative.
- Day traders should consult the weekly candlestick of their local markets to know the dominating trend.
- The previous session’s high and low marks will form the immediate trading range.
- If any index/ stock drops below the previous low mark, it will signal a bearish intraday trend.
- Bearish trend is best traded by selling near any resistance level.
- Since this is a directional trend, use Moving Averages and trendlines to find the resistance (price turns down from these indicators) and support (price breaks above these indicators).
- Resistances will be trade entry points and support will provide trade exit point.
- Keep strict stop loss in every open trade.
World stock markets are in a negative trend, lead by lower numbers in US stock futures. Markets may continue to trade negative, with high levels of volatility.
21 January 2021 (8:18 am IST)
Indian stock markets had gone through a correction phase in the last few sessions. During this time, Nifty become rangebound and traded in a range between 14,200- 14,660.
Yesterday, Nifty went just over this range top, but closed some 40 points below this major resistance. Today, SGX Nifty is indicating a 74 points gap up opening for Nifty which will break this range top level and start a new wave in Nifty’s uptrend.
How To Trade Nifty:
- After a big gap up opening, day traders should wait for Nifty to come down slightly so that the overbought RSI will become normal.
- After that, buying on the dip will be a good day trading strategy.
- Since it is a directional trend (uptrend); use trendline and 20-Day Moving Average in 5- minutes and 15-minutes charts as support levels for this trend.
- Exit when the trendline is broken.
We expect Indian stock markets to open with a big gap up. This will start a new wave of the previous uptrend in these markets, after a minor correction and rangebound phase.
21 January 2021 (8:00 am IST)
20 January 2021 (9:30 pm EST)
World stock markets have started their Asia session with positive numbers after US stock markets rallied in their overnight session. Although US stock futures are trading with thin positive margins at the time of writing, which indicates a rangebound trend in US stock markets.
In Asia, all major stock markets are trading positive. SGX Nifty is 50 points higher, hinting at a gap up opening in Indian stock markets.
How To Day Trade:
- World stock markets are showing a single trend; uptrend.
- This makes trading easy for day traders.
- They can follow the uptrend in their local stock markets and trade long.
- Although, this trend can turn into a rangebound trend before European stock markets start trading.
- This phase is usually volatile for US stock futures and creates volatility in world stock markets too.
- Therefore, day traders should try to avoid trading during that phase and keep stop loss in their open trades.
- Trading an uptrend (directional) is easy and using Moving Averages and trendlines provides support and resistance levels.
World stock markets are trading with positive numbers, following the rally in US stock markets. As a new administrations takes place in the US and ends political uncertainty, US stock markets are expected to go on a new wave of uptrend, followed by global stock markets.
20 January 2021 (8:20 am IST)
SGX Nifty is down by 40 points at this hour, indicating a lower opening for Indian stock markets too. That will keep these markets rangebound within the previous trading range.
In the last three sessions, Indian stock markets have traded up and down alternatively. That confirms a rangebound pattern in these markets. Nifty rallied more than 200 points yesterday and its weekly candlestick has turned positive again.
How To Trade Nifty:
- The thumb rule of technical trading is, any trend reversal must be confirmed by the next candlestick.
- Therefore, yesterday’s intraday uptrend in Nifty should be confirmed today.
- SGX Nifty is 44 points down, and Nifty could open negative.
- If Nifty follows the lower margin of SGX Nifty, that will be a negative signal.
- However, if Nifty does not open with bigger negative margin, that would be a positive signal.
- After the opening bell, day traders should watch both the support and resistance levels to know which way Nifty will trade today.
- If the index finds support at Moving Averages (9-day on daily charts, 20-Day MA on hourly charts) then Nifty will stay rangebound and try to rise again.
- However, a lack of support from these technical indicators will indicate a downtrend in Nifty.
- Day traders should wait for a clear signal of the intraday trend, then follow that trend.
Indian stock markets are poised to open slightly lower after yesterday’s rally. It indicates a rangebound trend within this week’s trading range. If Nifty trade above the previous high mark, it will rise further within the previous week’s trading range.
20 January 2021 (8:01 am IST)
19 January 2021 (9:30 pm EST)
World stock markets are showing mostly positive numbers in major indexes, but the margin is thin and the trend looks weak.
In Asia, all major markets are positive, except Nikkei (Japan) which is trading with negative numbers. SGX Nifty is also negative, trading down by 46 points.
US stock markets had closed positive in their overnight session. US stock futures are still positive with small margins.
How To Day Trade:
- World stock markets are trading rangebound.
- In these market conditions, different markets may show different intraday trends.
- Day traders will do well by focusing on their local index.
- The last week’s trading range can provide support and resistance levels for intraday trading.
- Watch the minor trend between these levels and trade with that. A minor trendline can be useful for spotting the trade open and closing points.
World stock markets have opened positive in Asia, but the trend is weak and volatile. This could turn into negative numbers in the second half of the global session.
19 January 2021 (8:24 am IST)
After yesterday’s fall, SGX Nifty is trading 135 points higher, indicating that Nifty will also open high, perhaps near the previous opening from where the index had fallen.
Technically, a higher opening was expected after yesterday’s negative trend took Nifty to oversold zone on hourly charts. On daily charts, the index had fallen below its 9-Day Moving Average, which was a negative signal.
How To Trade Nifty:
- Since the last two sessions, Nifty had been in a downtrend.
- Will this trend continue or not, this can be revealed by the 20-Day MA on hourly charts and 9-Day MA on daily charts.
- If Nifty crosses above these indicators after a gap up opening, then the previous downtrend will end and Nifty will be back on track for a range bound session.
- However, if these two indicators stop Nifty and the indicator reverses down from here, then the downtrend will continue and “sell on high” strategy will suit day trading.
- Day traders must wait and watch what kind of trend Nifty shows.
- Follow that trend, keep strict stop loss in open trades and exit trades once the trendline is broken.
Indian stock markets are expected to open with a gap up and big gains. After that, these markets will stay rangebound within the last two sessions’ trading range.
19 January 2021 (8:04 am IST)
18 January 2021 (9:34 pm EST)
US stock markets had a negative trend in their overnight session, but US stock futures are trading highly positive in Asia session today. That indicates a rangebound trend in these markets.
World stock markets were negative yesterday at this hour, but today, the trend is highly positive, showing that global markets are also range bound.
At the time of writing, major Asian stock markets are trading with gains. SGX Nifty is more than 100 points up, hinting at a similar high opening for Indian stock markets.
How To Day Trade:
- In rangebound trend, major higher and lower levels play as resistance and support and keep the intraday trend in between.
- Day traders can draw these levels from yesterday’s high and low points of their local index.
- The intraday trend is expected to start within these levels.
- If the trend crosses above the previous high, it will add to its gains.
- However, if the trend reverses from the high point, it will stay rangebound and trade towards the support levels.
- Markets will stay volatile like previous many session.
World stock markets are trading positive in today’s early trading hours. This trend could continue further or stay within the trading range of the previous session.