Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Liquidation Breakout Failure in Nifty Futures – Sign of Positional Strength

49 sec read

The Indian stock market has been buzzing with activity, and the recent performance of the Nifty index has caught the eye of investors and analysts alike. In the past 27 trading sessions, Nifty has reached an all-time high 16 times, a testament to its underlying strength. This is not just a fleeting trend; it’s a reflection of the robust fundamentals and investor confidence in the Indian market.

Major US indices like the Dow Jones, S&P 500, and NASDAQ closed positively, driven by short covering and optimistic outlooks from companies like Apple. This positivity often spills over into the Indian market, providing a cushion against domestic challenges.

Yesterday, Nifty Futures experienced a sharp liquidation followed by a mild recovery. This movement clearly indicated a liquidation breakout failure, coupled with a look-below-and-fail scenario. Typically, such patterns target the opposite side of the balance, suggesting that more all-time highs are likely in the upcoming trading sessions.

Positional put buyers seem to be tricked by the current market activity, mirroring the trends observed in June. This pattern of misleading positional put buyers may continue in the current series as well. The responsive buyers yesterday established a strong support zone. A significant downtrend for the rest of the month would only be signaled by a breakdown below yesterday’s low.

For the current month, the support zone are upgrade to be around 24,212. The expected short-term targets are approximately 24,500 and 24,600 levels.

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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