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)

Is Bank Nifty Signalling a Short Term Top?

50 sec read

Market Sentiments

The short term Market Sentiment(Index Futures) is ultra bullish and retail players are quite aggressive in nature in playing the index longs. Bank Nifty shows extreme sentiment and possibly could signal a short term top. And the overall volatility in the market is down and remains below sub 14 levels indicates naked players are in neutral state not much aggressive on naked longs/shorts. Banking stocks/index might show increased volatility as upcoming economic event RBI’s monetary policy review on December 2.

[one-third-first]
13.85%
Market Volatility
[/one-third-first] [one-third]
83.52%
Nifty Future Sentiment
[/one-third] [one-third]
94.28%
Bank Nifty Future Sentiment [/one-third]

Nifty Futures Hourly Charts

Nifty and Bank Nifty futures both ends the week with a gains of 0.9% and 2.4% respectively. And Bank Nifty futures shown 7 weeks of continuous positive gains.

Nifty Futures Hourly

[wp_ad_camp_5]

 
Nifty and Bank Nifty futures both maintain the prolong positional buy mode(more than a month in case of Bank Nifty) with the support zone comes around 8344 and 17719 respectively. Reverse your positions to Positional sell mode if the support zone breaks on the hourly charts.

Bank Nifty Futures Hourly Charts
Bank Nifty

Nifty Open Interest
The Open Interest paints a bullish picture as both 8300PE and 8400PE writers remain strong so far. And 8400 could be the support zone for current month expiry.

Open Interest 23 Nov

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)

Things you need to know before trading OTM Options

There is a saying that OTM options are for gamblers especially those who are blindly betting on cheaper options. And this post explores how...
Rajandran R
2 min read

Nifty Overheated and Will Nifty Pullback?

Nifty is racing towards an all-time high and in the current swing most of the price action happens in the form of gap up...
Rajandran R
30 sec read

Bank Nifty Futures – Market Profile Charts and Overheated…

Bank Nifty Futures - Market Profile Charts and Overheated Emotions - September Series
Rajandran R
18 sec read

3 Replies to “Is Bank Nifty Signalling a Short Term Top?”

  1. Is it possible to front load previous days 30 minute data as continous intraday for futures in amibroker

      1. Yeah I meant backfill. I just have analyse how it is done.(not used amibroker you live chart are a boon)
        Market makers/FII seem to know the precise level that can trigger a trailing stop loss to get hit to sustain an rally they ensure that levels are not broken beforehand.
        Further since all supply only comes after the complete trend is over strength of the bull run is maintained till actual reversal does not take place.

        I think there has never been such kind of market consensus in Indian market on market direction.

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More