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 – Short Term Overview – October Futures A lot of weird things happened during Wednesday trading session. Nifty Smallcap closed positive while Nifty Spot lost more than 150 pts. India VIX spiked above 18.12 levels.
Prevailing […]- Nifty Futures – Volatility is the Keyword – October Futures October month started with high volatile movement in Nifty Futures where it swings between 10857 - 11090 during Monday trading session. But don't be surprised with such sort of wild […]
- Extreme Indications in Nifty Futures Nifty futures on the daily timeframe shows extreme indications as it tested the 3 Standard deviation band on Thursday, September expiry day. Sideways to short-term pullbacks are expected […]
- Nifty Futures at Critical Support Zone at 11027 – 11043 band Nifty Futures quick flip trading system is currently trading with immediate base supports coming around 11027-11043 levels. Price holding 11027 is very critical for the current uptrend to […]
- Nifty Futures Short Term Overview – Market Profile Nifty Futures lost 5.4% for this month. Interestingly so far it is outperforming Bank Nifty Futures which lost 10% for Sep 2018 alone. Expiry is very near and current Nifty Futures […]
- Nifty Futures – Extreme Negative Sentiment Emotional selling prevailed during the Tuesday's trading session intensifying in the last 1 hour of the trading session. Emotions are running high among the traders as intraday volatility […]