Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and 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. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Nifty and Bank Nifty Futures – FEB 2016 Overview

1 min read

Jan 2016 is one of the best month for bears! Nifty futures lost 5.2% and Bank Nifty futures lost -8.2%. Nifty made a bottom at 7233.8 and Bank Nifty made a pullback from the lows 14730. The pullback rally was sharp enough despite the prevailing negative sentiment among traders.

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Last Friday global market went for a strong rally after Bank of Japan surprised markets on Jan 29,2015 with a negative interest rate announcement to stimulate the economy.

Nifty Hourly Charts

Hourly Charts

Nifty and Bank Nifty hourly charts continues to be in the shorter term uptrend. However Bank Nifty futures lags Nifty futures. Divergence between the two instruments was clearly visible on Friday trading session where Nifty was trading in the positive territory however bank nifty dropped due to poor Q3 results from major banks. Shorter term resistance points in Nifty futures are 7627 and the Gap Zone 7734 and support comes around 7400 zone. Bank Nifty resistance zone comes around 15630 and support zone for Bank Nifty comes at 15277

Bank Nifty Hourly Charts
Bank Nifty

Open Interest Builtup

Since the series is young its tough to get clues from the Options Open Interest built up. At the start of the series 7400PE holds the higher open interest indicating that Option players are so far confident of holding 7400 for this expiry. Declining India VIX down below 18 handle suggests that extreme negative sentiment in the market is fading out.

Open Interest

Market Expectation

Whenever markets bouncing from the bottom with a counter rally it spends most of the time within a consolidation on the broader range. So one can expect this FEB series to play with a tight packed range between 7425-7750 range. And any close below 7400 is more likely to turn the trend bearish again.

Upcoming Economic Events in Februrary

1)2nd FEB – RBI Interest Rate Decision
2)8th FEB – GDP Growth Rate
3)12th FEB – Indian Industrial Production Numbers
4)15th FEB – WPI Inflation Numbers
5)29th FEB – Union Budget 2016

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and 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. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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One Reply to “Nifty and Bank Nifty Futures – FEB 2016 Overview”

  1. Hi Sir, I am great fan of your blogs and codes.

    Could you please suggest a strategy helps generate volume.

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