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.

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