Oil prices rose on Monday, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January.
Market is awaiting a series of events to unfold like state election results, US Fed policy and UK parliament vote on modalities of Brexit, these market views would remain susceptible to major swings based on the news
Volatility in the markets is set to continue as all eyes now shift to the outcome of the ongoing elections across five Indian states.
Most of the exit polls suggest that Congress is likely to make a comeback or at least give a tough fight to the ruling BJP in Chhattisgarh, Rajasthan as well as Madhya Pradesh. From a market point of view, the other two states like Mizoram and Telangana are not material to the markets.
Long Vega positions were built in index options as traders expect the volatility to persist in the following week as all eyes now shift to the outcome of the ongoing elections across five Indian states.
Sector-wise, IT was the only index that performing well.
Nifty likely to face resistance at 10620 and support at 10500.
Inside Candle has a lower high and a higher low than the previous candlestick on the chart; this indicates that the market is consolidating.
It is consolidating because the bulls cannot manage to create a higher high and at the same time the bears fail to create a lower low.
As such, there is not sufficient buying or selling pressure to break the previous bar’s high or low.
In simple terms, if the price action interrupts the range upwards, then you should go long. If the price action breaks the range downwards, then you should trade the short side.
You should always put a stop loss when trading inside candles.
The proper location of your stop loss is slightly beyond the inside candle’s top, or bottom, depending on the direction of the break.
Projecting the potential move with Inside Bar Breakouts can be challenging.
Often Inside Bar trades can lead to a prolonged impulse move after the breakout, so employing a trailing stop after price has moved in your favor is a smart trade management strategy.
Disclaimer: The views expressed by investment expert on https://www.rollnreel.com are his own and data available from nseindia.com. Rollnreel.com advises users to check with certified experts before taking any investment decisions.
