Indian Markets Today: Volatile on Global Cues

 26 Jul, 2016, (8:30 AM IST )

Indian markets do not have any reason so far for jumping up like they did yesterday. Bank Nifty reaching near its major resistance level (19,170) could be a technical point to keep these markets in check today.

If global cues turn deeply negative then Indian markets may also see a negative session.

However, these markets are in a continuous uptrend so any improvement in bigger markets could help Nifty bounce back from its support levels.

These support levels are near 8,598 and 8,554. Resistance will come near 8,678 for Nifty if the index turn higher.

Watch these levels, global cues and trade with the trend.

Good luck, enjoy the session!

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World Markets Today: Volatile before the Fed

26 Jul, 2016, (8:24 AM IST)
25 July 2016 (10:54 PM EDT)

The week, as we had predicted, is progressing in global stock markets with lots of action and thrills, some obvious, some not so.

Asian markets have opened in the red after U.S. markets had their first, bigger negative session overnight. Dow Jones fell 100 points during the session, although the index recovered slightly to trim its losses by closing time. SGX Nifty is also trading flat, indicating a subdued opening in Indian markets later today.

The Federal Reserves’ monthly policy meeting starts today and tomorrow the central bank will declare its interest rates and forward guidance. After that, the Bank of Japan is expected to declare its rate policy but there are whispers that this central bank is not going to hand out any more free money at thig point.

That is why markets are expected to remain highly volatile and maybe negative, if support levels give in under selling pressure.

U.S. stock futures are still negative and if European markets also trade low later in the day, then global markets might continue with a negative trend through the day.

Watch the trend line of your local index and trade accordingly.

Good luck, enjoy the session!

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US Markets Today: Range Bound near the Top

25 July 2016 (9:13 AM EDT)

I am still laughing.

In 2008, Yahoo had turned down Microsoft’s offer of $45 billion. Today, the company sold its core business to Verizon for an amount ( $4.83 billion) which Apple would leave as tip if it were a person and went out to dinner :)

Lesson? Think carefully, patiently before saying no to money.

For traders in U.S. markets, this lesson will apply to day trading today as they will have to focus in right trade entry and exit points because indications are, we may see a narrow range bound pattern in major U.S. indexes.

Dow Jones has highest point at 18,622. It does not look likely that the index will cross over this levels before thew Fed’s meeting later this week.

That would make a range bound session more probable in this index and broader U.S. markets. In that case, markets could bounce back from support levels and revers trend from higher levels.

In hourly charts, Dow Jones is showing resistance near 18,600 and support near 18,480. This will be the immediate trading range for this index. So watch these levels and trade with the trend.

Good luck, enjoy the session!

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Indian Markets Today: Range Bound, Volatile on Global Cues

25 Jul, 2016 (9:28AM IST)

Indian markets have opened flat, in spite of an earlier jump in SGX Nifty, indicating that weak global cues are stopping these markets from completing their last week’s broader range.

Nifty, it seems, may develop a smaller range today and trade between previous session’s high ( 8,548) and low levels (8,489). For intra-day trade in this index, immediate support comes near 8,526 mark. If this level is breached then Nifty could touch down the 8,504 mark. Below that, 8,467 and 8,445 will be other support levels.

Keep an eye for any bounce back from any of these levels as Nifty has been strictly range bound last week.

In case global cues turn positive for any reason at all, then Nifty may try to recapture last week’s higher levels of 8,563 or 8,585.

Watch these levels and trade with the trend which could remain highly volatile.

Good luck, enjoy the session!


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World Markets Today: Volatile, Range Bound in Fed, BoJ Week

24 July 2016 (11:43 PM EDT)

25 Jul, 2016, (9:13 AM IST)

Global markets have opened for an important, action-packed, thrilling and exciting week!

Well, that happens every week but this week, special events of the Fed and the Bank of Japan’s policy meetings will be adding to the thrills and actions in markets.

Also, Italian banks are going to face stress tests soon and that is causing discomfort and doubts in investors about this trouble-ridden sector.

So I’ll be watching European markets, especially Italian indexes with (usual) interest this week.

U.S. markets continued their range bound pattern last week and closed with a sudden jump in their last trading minutes. That triggered  hopes in Asia this morning and almost all Asian markets and SGX Nifty opened with high numbers.

These high hopes were dashed when U.S. and European stock futures turned negative in early trade.

That makes markets range bound at this time, trading within their nearest support and resistance numbers. Global markets are obviously waiting for European markets to provide direction (negative pressure) and hoping for more stimulus money from big central banks later this week (positive support).

Watch how your local index trades and follow the trend line between upper and lower levels.

Good luck, enjoy the session!


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US Markets Today: Range Bound Session Continues

22 July 2016 (9:17 AM EDT)

U.S. markets are about to start another range bound and volatile session. In short, the same story from previous sessions of this week could be repeated.

Next week the Fed’s short term policy will be declared and till then, markets may prefer to trade in already established range.

That would mean a highly volatile session as we have seen in European markets. To make money in such conditions, one would have to focus like a hawk on support and resistance levels and any signs of bounce back ore reversal from higher levels. That could give more than one chances of trading in different directions.

However, if support levels are breached easily then an intra day negative trend could develop.

In hourly charts, Dow Jones has support near 18,500. Next support comes near 18,470 and below that level, more losses could occur in this index and  broader U.S. markets.

If Dow Jones trades positive, then 18,560 will act as the first resistance level. Above this level, the index could go up to 18,580- 18,600 mark.

Watch these levels and trade with the trend.

Good luck, enjoy the session!

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Indian Markets Today: Volatile Near Support Levels

Fri, 22 Jul, 2016 (9:14AM IST)

As we had been writing Indian markets, especially Nifty had been refusing to cross over its weekly high in recent few sessions.

Now that global cues are turning negative, Indian markets are also expected to follow that trend. Nifty could remain volatile till it falls below 8,500, which has been its major and range support in last 7-8 sessions.

The index will remain volatile near this support level and trade between 8,551- 8,480- its immediate range.

Nifty’s nearest resistance will be near 8,532 and 8,560 levels. While support will come near 8,480- 8,451- 8,399 levels. As happens with range bound trading patterns, the index may bounce back from support levels and revers down from resistance levels.

Watch these levels and trade with the trend line.

Good luck, enjoy the session!


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World Markets Today: No Central Bank Relief, Correction Builds up

22 Jul, 2016 (9:07AM IST)

21 July 2016 (11:34 PM EDT)

As discussed in our last post, U.S. markets retreated form their high levels after the ECB did not talk of any fresh stimulus or free liquidity. On top of that, U.S. labor markets threw some very positive numbers and that extinguished any hope for new money hopes from the Fed too.

Asian markets are following that negative trend and are trading in the red. SGX Nifty is slightly positive, indicating a flat and range bound opening in Indian markets soon.

U.S. and European stock futures are also hovering near their previous close, dipping in the red at times. If European markets turn down, which looks more plausible at this time, then global markets will extend their negative session into a correction next week.

Right now, markets are expected to trade in previous session’s range. If support levels are not held, then a trend will develop.

Watch that trend and trade with it.

Good luck, enjoy the session!


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US Markets Today: Good data, no talk of Stimulus, rally in danger

21 July 2016 (9:18 AM EDT)

All “bad” news for U.S. markets today. Jobless claims dropped, indicating improvement in labor market (the Fed’s one condition for rate hike,

The ECB kept rates on hold (no negative rates) and did not say anything about stimulus. In fact, the central bank’s chief Mario Draghi even declared that euro zone economy showed much resilience in the face of Brexit and that banks were in better shape than 2009.

There you go. All those twists and turns in sentences mean, no free liquidty coming from the ECB. Euro jumped up as currency traders understood the meaning behind these words. Stock traders are still clinging to hopes of some kind of hint from Draghi about future stimulus so European markets and U.S. stock futures have stopped in their tracks.

Before all this, another stimulus related bad news had come from Asia where in a radio interview, governor of the Bank of Japan had denied any helicopter money for markets.

That’s a truck load of bad news for QE junkie markets.

I maybe wrong but now stocks have no place to go except lower.

If U.S. markets still go higher, that would mean markets are clinging to hopes of some relief from the Fed.

Apart from that, no hopes for markets now for any new installment of free liquidity from any central bank. The Bank of England has already refused to provide any new QE.

U.S. markers are expected to trade within their weekly range. Yesterday’s high and low will mark the immediate trading range for bigger indexes.

Watch those levels and trade with the trend.

Good luck, enjoy the session!

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Indian Markets Today: Range Bound, Weak Session

 21 Jul, 2016, (9:06 AM IST)

Yesterday, Indian markets traded positive but surprisingly, Nifty seemed very reluctant to go past 8,560. Usually these markets are in the forefront of dancing lines whenever there are talks of big central bank stimulus, but this time, Indian markets are staying within their range.

SGX Nifty is also trading slightly negative after the credit rating agency Moody’s warned of dangers to emerging markets, including India, of being vulnerable to external shocks.

So now, Nifty is expected to remain range bound and the index could trade between 8,590- 8,417.

For intra-day trading, Nifty will face resistance near 8,554- 8,539 levels while 8,515 and 8,490 will act as its strongest supports. Below these levels, 8475 and 7,451 will provide support to the index.

Nifty has continuously shown reluctance to go higher from current levels. At this time, the index looks range bound so keep an eye on trend reversals at higher levels but at the same time, bounce backs may occur at lower levels. If 8,500 level is breached and no bounce back comes, then a lower trend may come in this index and broader Indian markets.

Good luck, enjoy the session!

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