11 August 2020 (8:49 am IST)
Indian stock markets are expected to open higher today, as shown by SGX Nifty. But the trend could remain range bound as we saw yesterday too.
Nifty, as we have been writing, is consolidating below 11,375 and has been unable to sustain above 11,300. The index needs a breakout from its current range to rise further.
Right now, Nifty is trading in a strict range. Yesterday, despite a higher open, the index could not sustain day’s high point and closed lower,. However, it did not break its trend line in 15-minutes charts and that gives hopes to bulls.
Day traders should continue to wait and watch Nifty’s trading pattern because this will determine the direction in Indian stock markets. Overall, the trend in these markets is up but for the time being, a consolidation is taking place.
Day traders need to keep patience and wait for the range breakout because a consolidation phase- or sideways trend, can eat into their trading capital.
Nifty and Indian stock markets will open with a gap up today. After that, the trend will either continue to rise or turn range bound.