Indian Stock Markets Today: Rangebound, Volatile Trading Pattern

27 July, 2021 (8:37 am IST)

Indian stock markets had traded rangebound yesterday, with a highly volatile pattern of trading up and down, but closing near the opening levels.

This week, Nifty is strictly range bound, trading in a 100 points range, but so volatile that traders stop losses get hit on both up and down side.

SGX Nifty is 40 points up now, which shows that Indian stock markets will open higher. Day traders should watch and decide which side they want to trade; up or down. Then trade with the minor trend in that direction.

How To Trade Nifty Today:

  1. Nifty has been strictly range bound in the last two session and in the last couple of weeks.
  2. This provides day traders fixed support and resistance levels.
  3. Trade between those levels with a stop loss. Nifty has been trading in a very volatile manner that’s why no trade should be left open without a stop loss.
  4. Yesterday, Nifty found support near 15,800 and resistance near 15,900.
  5. Traders should watch these levels and be cautious about a trend reversal near these levels.
  6. Trade with the minor trend between weekly support and resistance levels.
  7. There is no other way to trade a rangebound pattern.
  8. Trade only once or twice, whether you make profit or not. Otherwise, you’ll fall in the trap of overtrading and lose money.

Indian stock markets are set for a higher opening. These markets have been trading in a box of ranges; big, small, and smaller ranges. In other words, in monthly, weekly, and daily range. This week, a smaller range is in effect.

There is a possibility that Indian stock markets will try to rise further within their big range. Day traders should watch resistance levels after the opening and trade with the minor trend; whether it is up or down.

Rangebound markets provide excellent chance of learning how to trade in both direction and become a neutral trader, instead of being bullish or bearish traders.

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