Indian Markets Today: Range Bound, Volatile Session

20 Jan, 2017 (9:02AM IST)

SGX Nifty is giving weak signals today, but it will depend on Nifty whether it breaches its major support of 8,400.

Going by lower numbers in SGX Nifty, Nifty and broader Indian markets may see a slightly lower opening.

Nifty is expected to open near 8,411- which is also its first support of the day. 8,400 has been major support for Nifty and the index has been pinned in a very narrow range of 8,400- 8,450 this whole week.

If Nifty bounces back after a low opening, then it may try to touch 8,428 (pivot) or 8,452 (first resistance) levels.

However, if Nifty falls below 8,400, then 8,387 and 8,369 will come as support levels. Only if Nifty closes below this last support level, the range will be breached for the index and then, we may see a return of main lower trend in this index and broader Indian markets.

Bank Nifty also has a major technical support at 19,030 and if this banking index falls below 19,000, then it may drag down Nifty and rest of the markets with it.

Wait for markets to become stable after initial volatility, then trade with the trend.

Good luck, enjoy the session!

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World Markets Today: Volatile, Trading on Local Cues

20 Jan, 2017, (8:50 AM IST)

19 January 2017 (10:19 PM EST)

Global markets continue to trade with high volatility and mostly local cues.

U.S. markets closed much lower overnight. Dow Jones fell below its range support of 19,700 but managed to close above it.

Asian markets opened low but recovered slightly after better than expected China GDP data. It looks like other markets are waiting to see the trend in U.S. markets next week, once the new administration takes over and not giving much attention to this week’s low numbers in major U.S. indexes.

SGX Nifty is lower but range bound, U.S. and European stock futures are marginally positive.

Markets are still mostly range bound. A trend, in any index, will take place only if it starts trading below this week’s low. If that happens, then take help of Moving Averages to trade along the trend line. Otherwise, if your local index shows a range bound pattern (goes up and down between same major support and resistance levels ) then trade with a combination of Fibonacci levels and RSI.

Good luck, enjoy the session!

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US Markets Today: Trading within Previous Levels, Volatile

19 January 2017 (9:11 AM EST)

U.S. markets are expected to trade within the range of this week’s previous sessions. That would mean a volatile pattern bouncing between support and resistance levels.

The ECB’s meeting has come and gone, there has been no change in the central bank’s policy or no big-move-inducing comments from the ECB president Mario Draghi- at least till the time of writing, so markets may remain neutral to this event today.

After falling below 19,750 in early trading minutes yesterday, Dow Jones recovered to close above 19,800. Today, the index is expected to open near this level again, maybe a pew points lower.

In a range bound market, the best signals for intra day trading are RSI and resistance/ support levels. Use these combined together to identify where price may bounce back or reverse,confirm it with price action, then buy or sell with the trend.

For Dow Jones, immediate support and resistance will come near 19,826 and 19,774 respectively. Beyond these levels, major R/S levels will be same as we have been seeing in past many week- 19,850- 19,750.

Watch these levels and follow the short term trend. Range bound markets tend to be highly volatile so watch out for sudden moves in markets.

Good luck, enjoy the session!

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Indian Markets Today: Highly Volatile, Range Bound Session

19 Jan, 2017 (9:09AM IST)

Indian markets are exhibiting classic symptoms of range bound pattern with sudden up and equally steep down trend within intra day time frame.

Yesterday, these markets saw a highly volatile session where major indexes first rallied and then lost all gains to close slightly positive.

SGX Nifty is trading negative today, another sign of up and down sessions within a range. Nifty is expected to open near 8,400 which is a support levels in itself and close to intra day support of 8,389 mark.

8,362 and 8,326 are lower support levels for Nifty today.

Nifty’s pivot is at 8,424 and this will act as the first resistance for the index today. Above this level, 8,452 and 8,467 will be resistance levels today.

Watch these levels, wait till markets establish first high and low levels of the day and then trade in the direction of the trend.

Good luck, enjoy the session!

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World Markets Today: Weak Trend, Volatile and Range Bound

19 Jan, 2017 (9:02AM IST)

18 January 2017 (10:30 PM EST)

Global markets continue to trade within their current range, bouncing between support and resistance levels. Both of these levels are holding up and waiting for some big even to cause a bigger gap up (seems difficult) or bigger gap down opening in major markets so as to start a trend.

Till that happens, global markets will remain range bound and highly volatile.

Watch the upper and lower levels of your local index and trade with the short term trend which is expected to restrict itself within those levels.

Good luck, enjoy the session!

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US Markets Today: Volatile, Range Bound, Weak Session

18 January 2017 (9:04 AM EST)

U.S. stock futures are only marginally positive at the time of writing, indicating that we may see another range bound and volatile session where major indexes could remain under pressure.

On technical charts, Dow Jones has been making continuous lower highs on hourly charts since last two sessions. This is a negative signal and although the index will remain range bound till the range support (19,700) level is intact, but a weakness in this index is becoming more obvious with every passing session.

Markets are also wary of the ECB’s meeting on Thursday and are apprehensive that the central bank’s maverick president Mario Draghi, may again pull some QE reducing trick on markets, especially considering increasing inflation in euro zone.

Expect U.S. markets to trade within their previous few sessions’ range and remain within their now-old resistance and support levels. There is no good news to push U.S. markets over the resistance levels but there are many geopolitical worries to weaken their support levels.

The Fed Chair Janet Yellen is also scheduled to make a speech later today (3 PM EST) and her comments may create more volatility in market.

Wait and watch for a definite pattern to develop in markets, then follow the short term trend.

Good luck, enjoy the session!

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Indian Markets Today: Volatile, Range Bound Session

18 Jan, 2017 (9:07AM IST)

SGX Nifty is trading within its last hours’ range from yesterday, with only marginal gains.

Indian markets, especially Nifty are also also expected to open flat and remain range bound within this week’s small range.

For intra day trading in Nifty, 8,405 will be pivot and if Nifty goes higher than this, and survives above this level, then it may try to reach other higher levels of 8,424- 8,433 or 8,468 mark.

Support levels are also similarly at small distances such as 8,370- 8,343 and 8,307.

Nifty has been range bound in last three sessions within these same levels. It may trade once again within the limits of these higher and lower levels.

Watch these levels and trade with the trend.

Good luck, enjoy the session!

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World Markets Today: Volatile on Currency Moves, Fed Speech

18 Jan, 2017 (8:49AM IST)

17 January 2017 (10:21 PM EST)

Stock markets around the world are under pressure and highly volatile on choppy moves in currency markets. Sterling is trading lower today after zooming yesterday on higher inflation and Brexit speech by the British Prime Minister Theresa May. On the other hand, the Dollar index fell down yesterday on president elect Trump’s comments that dollar is too strong. Today, this index is trading slightly positive.

The Federal Reserve’s Chair, Janet Yellen will be speaking about economic goals on Wednesday afternoon (EST) and tomorrow, the European Central Bank will declare its monthly monetary policy.

These all events have high impact value for markets and therefore, global markets are expected to remain subdued, range bound and highly volatile.

Asian markets are trading mixed, with Japan, Australia and South Korea negative and China and Hong Kong positive. SGX Nifty is slightly positive, but range bound, hinting at a similar pattern in Indian markets today.

U.S. and European stock futures are mildly positive, indicating that these markets will continue to traded within their previous range. One notable pattern in these bigger markets is, both DAX (Germany) and Dow Jones have touched their range supports more than once in last few sessions. That indicates weakness and it will be interesting to see when these supports are breached. For Dow Jones, this support is at 19,700 and for DAX, 11,500 marks this range support- which was breached very convincingly yesterday before the index bounced back and closed above this important level.

In range bound markets, it is better to watch resistance and support levels and follow the trend from these levels. If price bounces from support then buy, and if there is a reversal from resistance then sell.

Watch how your local index trade and trade accordingly.

Good luck, enjoy the session!

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US Markets Today: Volatile as Brexit Returns to Shake Markets

17 January 2017 (9:10 AM EST)

Last few hours witnessed a return of Brexit worries and European markets and U.S. stock futures swung wildly as the British Prime Minister Theresa May officially declared Britain’s exit from the European Union.

At one point, Dow Jones futures were down by more then -100 points, fueling worries about a crash open in U.S. markets today. But since then, U.S. index futures have recovered almost half of their losses, indicating a highly volatile session ahead.

Currency markets witnessed equally wild swings where Sterling gained more than 2%, despite Brexit confirmation as U.K. inflation registered quick growth. The Governor of the Bank of England, Mark Carney has expressed concerns about increasing inflation, another indication that this central bank may also look to hike its interest rates.

The rising inflation also makes this week’s ECB meeting quite interesting and puts pressure on stocks.

Donald Trump’s tax threats to various car manufacturers is making matters worse for U.S. stocks and the Dollar index, which is trading down today and gold is trading higher, indicating that investors are worried about equities and betting on safe havens like Gold.

U.S. stock futures are indicating a gap down opening today. Dow Jones may open near 19,820, which will be close to its support levels of 19,800- 19,750. the closing levels of this mega index will remain range bound (Dow Jones closes above 19,800) or turn bearish (Dow Jones closes below 19,750).

Wait and watch if major U.S. indexes receive buying support at lower levels. After the initial volatility settles down, trade with the trend.

Good luck, enjoy the session!

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Indian Markets Today: Nifty Trying to Breach Final Resistance

17 Jan, 2017  (9:18 AM IST)

Nifty is trading very close to its final resistance levels of 8,434 mark. If the index succeeds in breaking over this barrier and remains above, then Nifty and broader Indian markets are set to make more gains and Nifty may go up to 8,550- 8,600 mark, as we had been writing recently.

However, if Nifty fails to break this resistance, then the index may trade within previous session’s range. Nifty has pivot at 8,404 and supports at 8,382- 8,352- 8,303 levels.

Give markets some time to establish a direction, then follow the trend.

Expect markets to remain volatile near such an important level.

Good luck, enjoy the session!

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