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
When Does Nifty Break out of the Longer Consolidation? The current sideways markets running in Nifty Futures is almost 48 days old. And consolidated between 10800 - 11145 levels most of the time. 
Nifty Futures : Whipsaws Ahead : Sep 2019 Short Term Outlook Whipsaws are quite common in a nontrending market especially when the competition is poor from both buyers and sellers. This usually happens when only trading money competes rather than a […]
Nifty Futures Mid July 2019 Short Term Overview
Nifty Futures closed the long pending Island gap reversal this week. Nifty also managed to recover marginally from the lows made but not completely out of the woods yet and continuously […]
Nifty Futures – Weekend Review July 2019 A lot many news factors had come in the last 45 days starting right from Exit Poll Announcements, Lok Sabha Election Results, RBI Rate Cut, India Tariff Announcement, July Union Budget […]
Nifty Futures – Weekend Review June 2019 Nifty Futures for the entire month has been rotating in a broader range i.e the range established on election results day (11640.2-12070). It is almost a month where the price is circling […]
Nifty Futures Excess Formation on Daily Timeframe Nifty futures on Daily timeframe formed excess on election results day. Excess is the end of one auction and the beginning of another auction. However last Friday there is a failure to […]
