The Indian equity markets have started showing visible signs of strength after weeks of consolidation and volatility. The Nifty 50 Future, in particular, has demonstrated notable improvement in structure, sentiment, and momentum — hinting that the recent bottom might be more than just a short-term bounce. Let’s dive deep into the state of the market with a combination of technical charts, Market Profile analysis, sentiment indicators, and institutional flows.
Nifty Futures Daily Chart – Key Observations
On the daily timeframe, Nifty Futures has broken out of a base-building pattern, backed by five consecutive green sessions. The most crucial takeaway here is the recent swing high around Feb 2025 around 23800-23850 levels. These are important market references that often act as magnets during an uptrend:
These act as potential targets for bulls in the medium term, and also mark supply zones where responsive sellers may emerge.
Market Profile View – Structural Strength Emerges
The Market Profile chart reveals a much richer story underneath the price action:
🔹 Key Insights:
- Dual Momentum Zones seen on March 4th & 5th indicate strong initiative buying, suggesting a shift in control to buyers.
- Dominant Buyers were evident since March 11, with poor lows (unfinished auctions) confirming strong buying interest and aggressive upward auctioning.
- Value Areas Are Building Higher: This shows acceptance of higher prices, and the emergence of a possible uptrend from a Market Profile standpoint.
- Immediate Single Print Support Zones:
- 23,100 – 23,200 (critical short-term demand zone)
- 22,860 – 22,900 (backup defense zone if volatility strikes)
These support zones offer excellent reference points for risk-defined long entries and monitor for any change in bearish sentiment/acceptance.
Weekly Chart – Trend Acceptance
The weekly chart has confirmed strong acceptance at lower levels after a corrective phase. What stands out:
- A clear reversal candle with strong range and bullish body.
- Price has reclaimed previous weekly value areas — a sign of strength, not just a bounce.
- The current structure resembles a classic V-bottom reversal pattern.
This indicates that the market is building a new base for a potential move toward previous swing highs.
Market Sentiment Dashboard – All Green Lights
Sentiment across macro and micro parameters has improved substantially:
| Indicator | Score | Highlight |
|---|---|---|
| Nifty Index | +6 | 5 days of gains, strong trend |
| FPIs | +5 | Foreign selling moderating, fresh longs initiated |
| Sector Performance | +5 | All 13 sectors in green, IT stocks recovering |
| Currency Strength | +4 | Rupee sees biggest weekly rise in over 2 years |
| Mid & Smallcap Indices | +4 | Healthy broader participation |
| Investor Sentiment | +3 | Analysts positive on earnings & growth |
| Weekly Gains | +3 | Best week for Nifty since July 2022 |
| Global Cues | +2 | U.S. equities supporting Indian optimism |
The table clearly reflects a broad-based tailwind supporting the current rally — from sector performance to foreign flows.
FPI Activity – Turning the Corner?
Perhaps the most powerful confirmation of sentiment shift comes from FPI behavior:
- Since March 12, FPIs have steadily unwound index shorts.
- Simultaneously, net long positions for DII’s have increased from 54K to 75K contracts.
- This data points to a short-covering rally on one side by FPI and a fresh long buildup by DII on another side — a classic recipe for sustained momentum.
One side institution covering shorts and another side institution increasing longs is one of the strongest forward-looking indicators in any market.
The Final Word – No Major Weakness in Sight
With everything aligning — price structure, Market Profile support, FPI flows, and sentiment — the Nifty is currently on strong footing.
Key Levels to Watch:
- Immediate Support: 23,100 – 23,200 (Single Print Zone)
- Secondary Support: 22,860 – 22,900
- Upside Reference Zones:
- Previous Swing high 23850 levels
As long as the support zones hold, buy-on-dips remains the preferred strategy. This structure could be the beginning of a fresh leg higher.
Pro Tip for Traders:
“Structure always precedes news. If the Market Profile shows strength, trust the auction.”
For any short term short selling opportunity one have to wait for the trading inventory to go long to too long. Nothing in sight at this point of writing.
