Indian Stock Markets Today: SEBI Rule, RBI to keep markets Subdued

1 December 2020 (8:03 am IST)

  • Securities and Exchange Board of India (SEBI) has been implementing intraday margin rules is a phased manner. From today, the intraday margins will be steeper than before and are expected to impact the intraday trading volumes.
  •  SGX Nifty has fallen 200 points yesterday with US stock futures and recovered in the afternoon with a change in US stock futures’ trend. Today also, SGX Nifty is down by a very thin margin, waiting for Indian stock markets to open and trade as per new margin rules of SEBI.
  • The Reserve Bank of India (RBI) will have its bi-monthly meeting this Friday. This can also keep Indian stock markets subdued.

Overall, local factors are not looking good for Indian stock markets, although global cues are positive. So, day traders should wait for markets to open and trade for at least half an hour, before deciding on their trading strategies.

How To Trade Nifty:

  1. Considering how SGX Nifty traded yesterday, day traders should stay cautious about trading Nifty.
  2. The trend in the index could be down, if it follows local cues.
  3. Or, Nifty may trade higher, if it follows global cues.
  4. But Nifty’s higher levels are capped and it has traded in small range in the last two weeks.
  5. Nifty is starting a new month today with SEBI’s margin rule which will affect the intraday volumes.
  6. The good thing is, it will take off some of the regular volatility from Nifty trading.
  7. On the other hand, it may trigger a downtrend in Nifty.
  8. Day trader should trade with the trend and strictly keep stop loss in all their open trades.

We expect Indian stock markets to open flat and trade range bound. The trend may be slow paced with less than usual volatility.

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