Indian Stock Markets Today: Range bound, Negative Trend

15 October 2020 (8:18 am IST)

Indian stock markets have turned range bound as Nifty trades between 12,000 and 11,800. Global cues are subdued and as we wrote yesterday, the so called stimulus from the Finance Minister was more of “meh” than anything worth cheering.

Indian stock markets are expected to follow global cues and trade cautiously until after the results of the US presidential elections 2020. After that, these markets will also follow the wave in US stock markets, whether it rises up or crashes down.

How To Trade Nifty:

  1. Nifty is showing a clear sideways trend.
  2. This trend is obvious in hourly charts.
  3. Day traders should use the trading strategies suited for sideways trend.
  4. That would mean, selling near strong resistance and buy near support.
  5. Use hourly chart to define these support and resistance levels, then trade with 5- minutes or 15- minute charts.

Indian stock markets are expected to open with mildly positive numbers and trade within this week’s range. We can expect this range bound trend till the first week of November and after that, a big trend could jolt these markets

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World Stock Markets Today: Small Correction Before the US Presidential Election

15 October 2020 (8:18 am IST)

14 October 2020 (10:48 pm EDT)

On November 3, results of the US presidential elections 2020 will be declared. Before that day, we can expect a small correction or profit booking in world stock markets.

We had written this yesterday also and US stock markets closed negative, confirming the cautious nature of the current trading pattern in those markets.

If one sees the weekly chart of Dow Jones, one can clearly see a small formation where the index is creating a double top and a small weekly range between 28,650 and 27,100. We can expect Dow Jones to trade within this range until the election results are over. After that, we are expecting a big wave in US stock markets, which can go in any direction based on how markets take the results. World stock markets are expected to follow that wave and its direction.

US stock futures are negative in Asia session. European stock futures are following that lower trend. Major Asian stock markets are trading mixed. SGX Nifty is range bound and trading with minor gains.

How To Day Trade:

  1. World stock markets are trading mixed in the absence of any single, big factor to create a trend.
  2. Such market conditions are better suited for day trading strategies that are focused on the local trend.
  3. Therefore, day traders should watch the trend in their local markets and trade with it.
  4. The sentiment is subdued in world stock markets and most of the markets will trade negative or range bound.
  5. Day traders should adapt trading strategies for these two markets conditions.
  6. If it is a clear downtrend, then sell near high.
  7. If it is a sideways trend between support and resistance levels, then sell at high and buy at low.

World stock markets are showing a mixed and volatile trend. As we wrote yesterday, these market conditions will continue for two weeks as markets wait for the US presidential elections 2020 to get over. Until then, trade cautiously and conv=serve your trading money.

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Indian Stock Markets Today: Correction With Global Markets

14 October 2020 (10:26 pm IST)

Just till the last week, things were good for Indian stock markets both on global and local level. Then both factors turned negative for these markets. Global stock markets started retreating before the US presidential election, afraid of big and choppy waves like the last time these elections were held in 2016.

Indian stock markets were expecting a stimulus from the finance ministry; that too turned out to be a damp squib.

Now, Nifty has started turning down from the major resistance of 12,000 and we expect this correction to continue for the next two weeks, when world stock markets will stay choppy and highly volatile.

How To Trade Nifty:

  1. Nifty has started a minor downtrend from its current range top.
  2. It would a better day trading strategy to sell at high and book profit at lower support levels.
  3. SGX Nifty is 50 points down at this hour, and we can expect a negative opening in Nifty too, perhaps near 11,900 levels.
  4. That can create an opening volatile phase.
  5. Day traders should wait out that period, and once Nifty starts turning down from initial recovery phase, it may be a good spot to short sell Nifty.
  6. Remember, a correct trade entry and exit makes all the difference in day trading.
  7. Take the help of trend line to anticipate these trade entry and exit points.
  8. When the price touches the trend line but turns down- that will be time to short sell.
  9. When the price breaks the trend line, that would be trade exit point.
  10. Use 5-15 minutes time frames for intraday trading.

Indian stock markets are expected to open negative and trade down with global cues. This correction may continues for coming days in Indian stocks.

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World Stock Markets Today : A Two Week Correction Possible

14 October 2020 (10:26 pm IST)

13 October 2020 (10:26 pm EDT)

World stock markets had a negative session yesterday which closed with negative closings in US stock markets in their overnight session.

The US presidential elections 2020 are just two weeks away and we may see a correction in US stock markets, followed by other markets in these two weeks.

Global investors have not forgotten the roller coaster ride of the US presidential elections 2016 and this time, nobody would like to leave money on the table to have multiple heart attacks. So, we can expect a range bound, and perhaps negative trend until the 2020 presidential election results are declared. And after that, we can expect some big wave, in any direction, in US stock markets followed by world stock markets.

After the negative closing in US stock markets, In Asia session this morning, all major Asian stock markets are trading in the red. SGX Nifty is 50 points down, indicating a gap down opening in Indian stock markets. US and European stock futures are mildly positive but these small numbers are not enough to support other markets.

How To Day Trade:

  1. World stock markets are under pressure in the Asia session.
  2. It is possible that the intraday trend will become range bound or stay negative in most of the markets.
  3. Day traders should remember that world stock markets are facing a major event, the  US presidential elections 2020 and volatility levels will spike in global markets.
  4. The best day trading strategy would be to trade in minimum lots and cut down on the number of trades too.
  5. This strategy should be adopted for the next two week to conserve your trading capital because after two weeks, we are expecting a tsunami in world stock markets.
  6. This can go either up or down but the main thing is, day traders will get a good opportunity to book profits at that time.
  7. Until then, trade in fewer lots, trade for a limited time and strictly follow the trend line.
  8. World stock markets will have mixed, choppy and mostly negative trend until then.
  9. So, protect your money and if possible, do not trade at all until the results of the  US presidential elections 2020 are out.
  10. After that, you can resume the regular trading pattern.

World stock markets are trading mostly negative in Asia session, This trend is expected to extend to the European session and after that, to the US session too. Market volatility will  be high and day traders should trade cautiously.

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Indian Stock Markets Today: Nifty Turning Down from Resistance Level

13 October 2020 (8:35 am IST)

Indian stock markets had already reached their range top. Today’s negative global cues might add to the downward pressure in these markets.


Nifty had crossed 12,000 level yesterday but could not sustain above this major resistance and closed much lower. Indian stock markets closed in the red yesterday, thanks to a press conference by the Finance Minister where she announced a few small financial steps for government employees, instead of any big package for business & industry.

Indian stock markets had been hoping for another stimulus and this step by the finance minister left markets disappointed. Today, we may see a continuation of the previous negative closing in these markets.

How To Trade Nifty:

  1. Nifty has been rising in one straight line, without any pause in recent sessions.
  2. It is possible that the index keeps trading lower from the major resistance of 12,000.
  3. If that happens, then day traders should sell at high and book profits at lower levels.
  4. Moving Averages and trend lines will be good indictors to use for finding trade start and exit points.
  5. Day traders should watch how Nifty trades in the opening hour and mark the trend line. Short sell when the price bounces but turns down from the trend line (resistance)

Indian stock markets are expected to trade low with the global trend. Like other markets, Indian stock markets are also trading range bound in a monthly trading range. We might see a negative trend though this week, within the monthly range.



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World Stock Markets Today: Negative, But Range bound Trend

13 October 2020 (8:05 am IST)

12 October 2020 (10:34 pm EDT)

Previously, we had discussed how major US stock indexes like Dow Jones and Nasdaq had started making smaller candlesticks on daily charts, which indicated a possible trend reversal. US stock markets rallied in their overnight session, and reached their current range top. As a result US stock futures are trading negative in Asia session today, dragging down world stock markets with them.

At this hour, all major Asian stock markets are trading negative. Markets in Hong Kong have stopped trading because of a typhoon. SGX Nifty is some 20 points lower, indicating a flat/ negative  opening in Indian stock markets. US and European stock futures are highly negative, indicating resistance in these big markets. The intraday trend is negative in world stock markets, but the overall trend is range bound within a broader monthly trading range.

How To Day Trade:

  1. A trend is called day traders’ best friend. Today, day traders have a single, downtrend in world stock markets.
  2. Therefore, they should take advantage of this trend and use day trading strategies for negative trend.
  3. This means, day traders should watch the trend line in the down direction.
  4. Whenever price rises, then  turns down after touching the trendline, that would be a good place to open short positions.
  5. In such downtrends, price usually finds weak support but strong resistance.
  6. These resistance levels would be good trade opening points.
  7. When the trend line is broken by rising price, that will be the ideal trade exit point.

World stock markets are in a negative trend today. All major indexes are trading down at the time of writing. This downtrend has started near the range top and could continue later in the week too.

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Indian Stock Markets Today: Range bound, Choppy Trend

12 October 2020 (8:10 am IST)

Indian stock markets have been climbing up in a straight line, following the positive global trend. Today also, SGX Nifty is trading higher, indicating a gap up opening in Nifty and broader markets. After that, Indian stocks may turn range bound as there is no strong global trend. Indian stock markets are expecting another dose of financial stimulus so technical resistance levels will not be strong enough to stop these markets from going up.

How To Trade Nifty:

  1. Nifty has been adding 100-200 points in almost every session in this month.
  2. The index is making positive candlesticks on bigger time frame charts.
  3. Another gap up opening will create a positive opening candlestick for this week.
  4. Today, Nifty may trade within a narrow range as global trend is muted.
  5. If that happens then day traders should use range bound trading strategies.
  6. This will include selling near resistance (high level) and buying near support (lower) levels.
  7. In this trend, day traders should keep their trading to a minimum.
  8. However, If Nifty continues to go up after a positive opening, then day traders can take help of the trend line and trade in long positions.

Indian stock markets are expected to open with positive numbers and trade range bound in this session. Any change in global trend will affect Indian stocks too.

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World Stock Markets Today: Mixed, Uncertain Trend

12 October 2020 (8:10 am IST)

11 October 2020 (10:39 pm EDT)

It’s  anew week in world stock markets and different markets are showing a mixed trend, with no one direction visible in global stocks.

US stock markets had rallied in the closing session of the last week. But today, US stock futures are starting this week with feebly numbers. Dow Jones futures have dipped below the red line, trading with minor losses. Nasdaq futures were positive with adequate gains; but now those numbers have also started slipping. In Asia, major stock markets are trading mostly positive. SGX Nifty is also 43 points higher at the time of writing. European stock futures are showing single point losses in early trade.

How To Day Trade:

  1. Since global markets are not showing any single trend, day traders should focus on the local trend.
  2. Check the monthly, weekly and daily candlesticks to see if there is any resistance ahead or the trend is strongly positive.
  3. For example, major US indexes are creating strongly positive candlestick pattern on monthly charts, but on daily charts these indexes are making small candlesticks, indicating a need of some positive news to push ahead.
  4. Once day traders have identified the trend line on daily charts, they should trade in the same direction and exit their positions when price breaks the trend line.

World stock markets are showing a mixed trend at the time of writing. US stock futures are looking weak, so their progress through the session will affect the global trend too. A drop in US stock futures will drag down global stocks but a jump in US Stock futures can change the trend in world stock markets to a positive one.

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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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World Stock Markets Today: Positive Trend Continues, Good Week for Stocks

9 October 2020 (8:06 am IST)

8 October 2020 (10:35 pm EDT)

World stock markets are showing positive numbers in all markets in the Asia session. This week had stared with positive numbers, and at hour, it looks like we’ll have a positive closing of the week too.

US stock markets traded in a narrow range in their overnight session but stayed positive. US stock futures are already trading with good gains in Asia session on stimulus hopes.

Yesterday, we had discussed the daily technical charts of Dow Jones and Nasdaq, that how they are trading in a minor uptrend along with a rising trend line. That trend line is still intact and traders who had taken long positions on the basis of daily chart, must have reaped hefty gains.

At the time of writing, major Asian stock markets are trading positive. SGX Nifty is 40 points up, showing that Indian stock markets will have another gap up opening. US and European stock futures are rallying to show that these big markets will continue their minor uptrend in this last session too.

How To Day Trade:

  1. World stock markets have been climbing up this whole week, except for one dip in the middle of the week.
  2. The week has brought an steady uptrend in global stocks and in this session too, day traders should use strategies for trading in an uptrend.
  3. That would be, buying when the price dips, touches the trendline, and bounces up again.
  4. Do not mistake the dips as a trend reversal. This is a strong global uptrend and only some negative news can change it.

World stock markets are trading positive in Asia session. The European session is also expected to rise, following the uptrend in US stock futures. US stock markets had started this weekly uptrend in world stock markets and those markets are expected to also close the week with positive numbers.

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