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Sometime back during Apr 2016 we have curiosity about pharma sector bottoming out. By that time sector has strong negative sentiment while hitting the panic bottom from there is had made a 2016 high of 12011. We believe that longer timeframe players are still interested in this sector though the presence of intermediate buyers.
Nifty Futures currently trading in a broader consolidation range for the entire august month and the September series contract is still trading in the broader range between 8575-8800. Overall Market mood is not so far benefiting the trend followers. Choppiness is again expected on Monday. However price trading and maintaining above 8600 indicates a possible continuation of the range 8575-8800.
USDJPY is in the downtrend for the last 10 months. Overall Volatility and downtrend momentum weakened in the last 4 weeks with the sideways movement in USDJPY. The Psychological trading zone – Pairs parity 100 got whipsawed couple of times followed by a minor pullback last week. As the panic in USDJPY is fading away one can expect USDJPY to continue in the large consolidation zone and expecting to test 108 in the medium term.
On the trading floor the buyers and sellers use hand signals to communicate Buy and Sell Futures & Option, to communicate quantity to buy and at what price to buy/sell in a open cry environment. The signals let traders and other floor employees know how much is being bid and asked, how many contracts are at stake, what the expiration months are, the types of orders and the status of the orders.
Current Uptrend is almost 7 months old and you can see from the chart though market had done almost 1800+ points since Feb 2016 majority of the times markets are in consolidation phase as indicates. Too much consolidation indicates that trend is aging. Aging doesn’t mean that we are going to see a reversal. One need to understand that what phase of market we are in to take relevant trading decisions.
In the last 3-4 months NIFTY IT index is a significant under-perfomer with respect to nifty. We also had a overvalued rating in NIFTY IT due to the nature of open gaps in the index. NIFTY IT is currently in the consolidation phase between 10750-11800. RRG Charts suggests short term out-performance could continue for some time as NIFTY IT sector is currently falling under the leading quadrant
It is almost a “V”-Shaped recovery from the May 2015 crash in Zinc Futures. Post the mid of July 2016, momentum in zinc had came down drastically. When the momentum declines buyers started getting frustrated with their long holdings. And when market conditions are not favoring those buyers naturally they turn to sell their contracts and there by triggering shorter term selling.
It is observed that Sensex is relatively having momentum build up and likely to enter from improving quadrant to leading quadrant which indicates out performance compared to the benchmark index S&P 500. Rest of the other markets are relatively pose a falling momentum. Brazil Bovespa this week moved into the weakening quadrant indicating the possibilities of under performance. Shangai SSEC showing under performance so far with stable momentum.
Gaps are always interesting reference when comes to discrete trading. Some gaps gets faded faster whereas some gaps take its own time to fade. Gaps represents emotions in the market and tracking gaps are critical for any futures trader. So we thought of making things easier for traders where you can track the unfaded gaps on the go.
Nifty Spot is currently trading around 8636 levels and so far nifty had travelled roughly 1800 points from Feb 2016 low of 6825. Intermediate Resistance is coming around 8635 and one can expect some consolidation around this zone for some times. Price could travel back and forth around this zone and could still remains in the range between 8450-8700 for the first week. However strong price push and close above 8700 suggests that we are more likely to test 9000 back again for this series.