Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Warning: Strong Volatility Ahead

40 sec read

Indian Finance Minister Nirmala Sitharaman announces corporation tax rate cuts and slashed to 22% (effective rate 25.17% including cess and surcharge) and that’s the Internation news, probably the most favorite talk among the media, traders, investors, promoters and almost every market participants this weekend.

The news not only spooked the markets but also the technical indicators. Yes, the 10-day ATR which helps traders to identify volatile range made a fresh all-time high. i.e Indian Markets are highly trading in an extremely volatile environment historically which will likely to bring a lot of unpredictability in the short term trend.

Nifty daily charts with 10-day ATR

India VIX ended -0.96% for the day at 15.4. Though not much of jump in India VIX it could be surprising for many. When the historical volatility is jumping anticipate the same to continue in the very shorter run.

The trend is likely to be uncertain and that is the true nature of the market most of the times. Extreme volatile markets bring too much of excitement and too much of speculation into the markets.

Money can be made/lost within few seconds/minutes. Position yourself accordingly!

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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