Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Bank Nifty Trade Preparation for 10th Apr 2017

53 sec read

Lets have a quick check on top down analysis. On the Monthly charts – Trend is up and one timeframing for the last 5 trading months. Weekly timeframe – trend is up and very less rotations seen. However on the daily charts bank nifty futures is in short term balancing mode and looks structurally weak due to the nature of consecutive overlapping consolidation phases as shown below. Fridays session also ended below 4 day low.

Bank Nifty Futures Daily Charts

Fridays Sessions shows the domination of weak Day timeframe buyers dominating till 2.15p.m followed by active stop hunting with late spike where the sellers started dominating and also the day ended with poor high. Hence, spike rules apply on monday’s trading session.

Bank Nifty Profile Charts

Key Reference Levels
1)Double Mechanical Reference at 21725
2)Poor High at 21620
3)Prominent POC at 21577, 21230
4)Spike Base at 21520

Bank Nifty Futures Profile Charts – Compressed

Spike Trading Rules Apply :

i) Opening Below the Spike Low 21410 indicates a high confidence downtrending move.

ii)Opening within the spike base and Spike Low indicates sellers are less confident possible rotational or mean reverting oppurtunities towards the prominent POC. This scenario is less likely due to prevailing uncertainty Syria Missile Attack Tensions.

iii)Opening above the Spike base indicates high confidence up-trending move and possibly this could bring more higher activity towards new high in Bank Nifty. It also indicates that those who shorted below the value area on friday’s session is more of emotional traders who get short in the hole.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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