26 October 2020 (8:21 am IST)
For Indian stock markets, today’s biggest news is Reliance Retail losing the Singapore arbitrations proceedings against Amazon. The court granted Amazon interim relief and stopped Kishore Biyani’s Future Group from entering into any deal with Reliance Retail.
Reliance Retail had already started an aggressive online ad campaign for its retail business. Today, those ads have disappeared.
Reliance Industries has a big presence in India’s Nifty 50 index. Any drop in this stock can trigger panic selling in Nifty and broader markets. On the other hand, the Reliance stock is also known for not falling when the common traders, investors expect it to fall. So, day traders must not assume anything, just watch how markets react to this news and trade with the dominating trend.
How To Trade Nifty:
- SGX Nifty is flat at this hour. That means overseas investors are also waiting for Nifty to react to Reliance Retail news.
- Day traders would do better to wait at least half an hour after the opening bell, before starting to trade, so that the opening volatility subsides and a clear trend emerges.
- Last week, Nifty had been strictly range and traded in a narrow range.
- That kind of trading pattern is neither good for day traders, nor for positional traders.
- It can trap small traders in overtrading and eat their trading capital.
- Trade only if a trend forms in early trading.
- This will be indicated by price trading with ( support, uptrend) or against ( resistance, downtrend) a trend line.
- If price trades sideways, then cut down your trading, trade fewer times in fewer lots and wait for a global or local trend.
Indian stock markets are expected to start their trading within the last week’s range. After that, the trend will either stay range bound or trade downward.