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.
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.
Weekly charts shows how the intermediate players are positioned. On the weekly charts Bank Nifty is clearly trending down and also out of the balance zone which indicates the dominance of intermediate sellers in control and they are quite aggressive post Nov 8 demonetization.
On the daily charts too many consolidation is witnessed since the start of the 2016. More the consolidation zone indicates the we are dealing with the aged trend. And also the recent look below the balance and fail indicates that shorter term support zone comes around 17950 and the price is expected to rotate in the balance zone 17950 – 18800 zone. If Any breakdown below 17950 indicates shorter timeframe down trend to restore again.