On Mondays trading session price is able to find a new higher equilibrium compare to the Fridays session as value is created higher and market sentiment too revived to positive mode despite Fridays negative close. Entire June trading session is so far in a compressed 100 point trading range between 9600-9700.
Bank Nifty monthly charts shows a clear breakout from the consolidatation and also nearing 52 week high as well. Still the FEB 2017 series has 12 more trading sessions to go. Its early to confirm that trend is up on the monthly charts however to be noted bank nifty never closed above 20400 levels on the monthly closing basis. Requires a strong trigger to close above 20400 on monthly basis.
On the broader range Bank Nifty Futures is in sideways mode between 18000-20500 for the last 7 months which indicates that clearly the market is not driven by the longer term players. Long term players dominance is less reflected in the last 7 months.
Top Down Approach provides us the macro visual perspective of the market participation. We will start with monthly charts to understand the long term participation, weekly charts to understand the intermediate term players and the daily charts to understand how the shorter timeframe players are behaving.