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)

Bank Nifty Futures Trading Preparation for 3rd Apr 2017

1 min read

Bank Nifty Futures Daily Charts

Let me cut short the top down analysis quicker in Bank Nifty Future Charts. We are trending higher on the monthly timeframe, weekly timeframe and daily timeframe. Typically every timeframe is indicating long. However banknifty looks structurally weak due to the nature of consecutive overlapping consolidation phases. This makes one to doubt about the current elongation of the trend above which occurs recently above the consolidation phases.

Though traders are coming and buying every breaks in banknifty, Consecutive consolidation phases followed by a breakout indicates that markets are getting tired of the trend and trend reversals are quite common in this phase. Trading longs are absolutely fine in this phase but better to reduce the position size in longs due to the risk in trend reversal involved.

Bank Nifty Market Profile

Here are the major reference zones from the profile charts

i)Breakout Failure on Friday Trading Sessions at 21583
ii)Prominent POC at 21536
iii)Top Balance of the Multi Distribution Day at 21386
iv)Gap Top Reference at 21313
v)Prominent POC at 21266
vi) Weekly high at 21654

1)Now considering the reversal odds in banknifty and if the late sellers are serious about the current business, then a gap down followed by a strong acceptance below 21536 indicates a high confidence trade setup and could be the starting point for trend reversal or a new balancing phase. Fading the Gap reference at 21313 is the possible trade setup based on the price acceptance below prominent POC

2)In case if the price open within prev days high-low range especially centered around the POC 21583. Probabilities are higher that we could see more compressed trading range on monday’s trading as well.

3)Price trading above 21536 and strong acceptance above 21536 will bring some more higher trading activity in the index futures

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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2 Replies to “Bank Nifty Futures Trading Preparation for 3rd Apr 2017”

  1. sir you are best. and i m regulerly your charts . it is very very useful to me. but now equity charts not updating. can you say any problem in my system or how i can see it properly ? mcx charts are ok. so i m confused.

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