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:
- Today happens to be the weekly Options expiry session for Nifty and Bank Nifty. It could increase volatility in Indian stock markets.
- Nifty has failed to get past 12,000 mark multiple times, but also refuses to create a downtrend.
- 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.
- 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.
- 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.