In the last week we had seen aggressive short covering from shorter timeframe sellers followed by lack of momentum post the breakout of 8800 zone. In the last three days again we started making fresh three day consolidation in the range 8800-8860 zone indicating that trend is getting tired and whomever trading this zone is most likely dominated by shorter timeframe buyers and this behavior also resembles that upside is very limited and one should prepared to trade with reversal mindset. Momentum Indicator is marginally up but subdued. This is the phase where the crowd cheers for every small up trends.
Daily Sentiment
Daily Sentiment indicator is holding positive. However Weekly sentimental indicator is negative for the last three weeks. This indicates that price reversal below 8800 or the price consolidating below 8860 could drag the price even lower.
Weekly Sentiment
India VIX
India VIX is currently in the declining phase since mid of june 2016 and currently at 12.9 very close to the all time low indicating that fear is completely eliminated from the markets.
Open Interest
Open interest is now currently maintaining the expiry range 8600-9000. Put writers are currently aggressive at 8500PE and 8600PE, Call writers are aggressive at 9000CE. And the Participation Open Interest indicates that FII’s and Clients piled up their inventories in futures to the extreme.
Related Readings and Observations
Nifty Futures Market Profile – Reading Market Generated Information for Apr Expiry April Expiry is near and so lot of expectation from the trading community. India VIX jumped to 24 levels however markets are still moving a very narrow range for this expiry. Nothing much […]
Nifty Futures Short term outlook for the Expiry Week On Thursday Nifty Futures opened with the extreme sentiment (gap up). However, Nifty Futures failed to keep the buyer's enthusiasm up and turned towards the previous days low and […]
Nifty Futures – Short Term View – 16th Apr 2019 Nifty futures so far in April series moving a very narrow range and 10 day ATR is around 110 levels and volatility is on the falling side. 
Nifty Futures April 2019 – Short term Outlook Nifty Futures Friday Sentiment ended extremely on a 5min timeframe which is not a good sentiment for a follow thro rally. Quick flip supports for Monday coming around 11734. Price started […]
Nifty Futures – Extreme Positive Sentiment Nifty currently trading around 11521 in Nifty spot making a one-way rally straight away from 10580 levels made during 19th Feb 2019. 
Nifty Futures at Critical Resistance Level – March 2019 Outlook Nifty is spending in a broader consolidation range for the last three months in the band of 10600-11000 levels. Now its been nearing critical Quickflip resistance level 10960 on the hourly timeframe.
