Indian Stock Markets Today: Volatile, Rangebound Trend

28 October 2020 (7:54 am IST)

Indian stock markets will have their monthly Futures & Options expiry tomorrow. Their trend is dominated by this fact today. Yesterday also, Nifty traded up even though the global cues were negative. SGX Nifty is also showing support at this hour although global markets are down.

That is why day traders should focus only on Nifty’s trend and trade accordingly.

How To Trade Nifty:

  1. Nifty is trading in a broad, weekly range.
  2. This week, it will continue to trade within that range.
  3. Yesterday the index fell in the opening trade. But then recovered smartly and traded up though the session, in a volatile manner.
  4. Today, SGX Nifty is indicating a solid support. If Nifty also shows that support and refuses to fall with global cues, then frankly, day traders should not trade today in Nifty because it will be a manipulated trend by market sharks.
  5. If Nifty falls with global markets, then day traders can cautiously make short trades.
  6. However, they should keep their trades and numbers of trading lots to a minimum.
  7. After the opening bell, wait for the opening churning to settle into an intraday trend.
  8. If it is a range bound trend, then do not trade and save your trading capital for the next week when a big trend is expected.
  9. If it is an uptrend, then also wait instead of trading.
  10. Trade only if the trend is lower, in sync with global cues.

Indian stock markets are expected to open flat. Tomorrow, these markets will have monthly F&O expiry session. As is well know, market sharks decide the closing levels of Nifty on such days. So, day traders should trade carefully and protect their trading capital form overtrading.

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