Indian Stock Markets Today: Hoping for Stimulus From the RBI

4 December 2020 (8:25 am IST)

SGX Nifty is 45 points higher, indicating that Indian stock markets will open positive. Nifty has become strictly rangebound closing near 13,130 almost every day, no matter if the opening is high or low.

At 10 am IST today, the Reserve Bank of Indian (RBI) will present its bi-monthly credit policy. Indian stock markets are hoping for some kind of stimulus from the central bank. If markets like what the RBI has to say, we can expect a rally in these markets. Even if markets don’t like what the central bank says, we can expect a volatile session but positive global cues will keep these markets steady.

How To Trade Nifty:

  1. The best trading strategy will be to stay away from markets until 10 am and trade only after the RBI policy and markets’ reaction to that.
  2. Another good strategy would be to buy out-of-money Call and Put Options.
  3. This will keep your position hedged and no matter what direction markets take, your position will not make any loss.

Indian stock markets are expected to open with positive numbers and trade in a small rangebound pattern until the RBI policy is declared. At that hour, these markets can show high volatility. After the policy has been declared and markets have settled down, we may see a directional trend in Indian stocks based on the reaction of big traders.

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