23 November 2020 (8:23 am IST)
Indian stock markets have been trading in a similar weekly range since the last two weeks.
This week also, SGX Nifty is showing a positive opening for Nifty, but the trend could stay within the same weekly range.
Rangebound markets are notorious for their volatile nature, so we can see sudden up or downs in these markets too.
How To Trade Nifty:
- On daily charts, Nifty is showing a strict range and the index has been roaming between support and resistance levels of this range.
- On weekly chart, Nifty seems to have made a tiny start candlestick for the last week.
- This weekly candlestick is so small that Nifty will either break out of its range or fall down, towards lower levels.
- In short, Nifty is open to all possible trends in this first session of the new week. According to the daily chart, Nifty could trade in a range.
- According to the weekly chart, Nifty could rise further or fall down.
- Day traders will have to keep these points in mind while day trading.
- In all three trading scenarios, previous support and resistance levels will be important.
- Day traders should draw a horizontal line from the previous week’s low levels. Draw a similar line from the previous week’s high level.
- This will provide you the immediate trading range of Nifty and the index will trade within this level.
- If the range remains intact, the trend will be range bound. If any level if broken, the trend will follow in that direction.
We expect Indian stock markets to open with positive numbers but trade range bound. Markets will remain highly volatile like the previous week.