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)

How long this short-term price compression holds in Nifty Futures?

40 sec read

Nifty Structure is poor in the last three trading sessions indicates the presence of short-term players. Often short-term players are fickle minded and they have a tendency to reverse their positions at the edge of the balance. On Monday’s Trading session price moved towards theticipated 10820 and 10835 levels followed by price rejection at the top resulting in a poor structure and poor high at the days top. This provides interesting trade setups to fade towards the previous poor structures.

Call writers are aggressive at 10900CE and moderately active at 10800CE. Trading range holds around 10600-10900 in a very short term. And EOD resistance is expected to build around 10800 levels. Price rotation can be anticipated towards 10740 and 10710 in a very short term. EOD supports are available at 10669 breaking this level is a bit of concern on the closing basis which has the potential to end this tighter band compression.

Key Events To Monitor

– President Donald Trump and North Korean leader Kim Jong Un Summit in Singapore
– The two-day Fed meet starts today (expectation of FED rate hike by 25 bps)
– India IIP and CPI data (post market hours)

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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One Reply to “How long this short-term price compression holds in Nifty…”

  1. This is very detailed article about explaining short-term price compression holds in Nifty. Thanks for the post as it was very helpful for a novice like me.

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