Indian Stock Markets Today: RBI Policy ahead, Volatile Trend

9 October 2020 (8:06 am IST)

It’s an important day for Indian stock markets when the RBI Governor Shashikant Das will declare the central bank’s bi-monthly monetary policy at 10 am IST today.

Indian stock markets have been hoping for the second fiscal stimulus from the Reserve Bank of India. If that happens, we can expect a big jump in these markets. If there is no stimulus, markets may turn highly volatile.

How To Trade Nifty:

  1. SGX Nifty is 50 point up at this hour, indicating another gap up opening in Nifty and broader Indian stock markets.
  2. After that, markets may turn slow paced and range bound, waiting for the RBI policy.
  3. It could turn into a highly volatile trend later as markets react to the policy.
  4. For such news driven days, one simple Options trading strategy would be the best trading strategy for day traders.
  5. Buy one out-of- the-money Call Option and buy one out-of-the-money Put Option. Then sit back and let market do whatever it wants to do. A big move, in any direction will bring you good profits.

Indian stock markets are expected to open positive and stay range bound in the first hour. After that, markets will wait for the RBI governor’s press conference at 10 am IST. The intraday trend will depend on how markets interpret the central bank’s monetary policy.

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