7 August 2020 (8:26 am IST)
As we wrote previously, Indian stock markets have become range bound after a minor correction. Especially Nifty has created a clear range where the index keeps trading up and down near the Fibonacci resistance of 11,548.
Today, the global trend is negative. SGX Nifty is down by 30 points and creating a negative pattern of”double top”. Although, nowadays Nifty does not follow SGX Nifty strictly, still day traders should cautiously watch Nifty’s trend and trade with it.
Nifty will essentially trade range bound within the last week’s trading range. This index and broader markets may continue to be volatile as we have been witnessing since the last few sessions.
Indian stock markets are expected to open flat or slightly negative. After that, the trend will depend on how Nifty trades. Yesterday, RBI did not cut its lending rates as markets were expecting. The impact of that disappointment could keep markets subdued today.