Nifty and Bank Nifty Trading at the Upper Extreme

Nifty Futures and Bank Nifty Futures are trading in a sideways compression mode for quite some time in Jan 2019 series. Both Nifty Futures and Bank Nifty Futures are trading very close to the current swing high levels.

Nifty Futures recovered almost 1000 points from Oct 2018 low and Bank Nifty recovered almost 3500 points. However, Jan 2019 expiry series is all about consolidating markets with Nifty and Bank Nifty Futures key support level comes around 10840 and 27300 levels respectively.

Nifty Futures 30-min Consolidation

Though immediate bullishness is witnessed in Nifty futures and expected to test Jan 1st High on coming monday. However failure to hold 11000 levels in the upcoming sessions and supports breaking on the downside during the later part of the session could be a potential reversal as far as medium term trend is concerned.

Nifty Futures Market Profile Charts

Stops built above 10960 levels with a Weaker ORR setup. And on the downside stops got built around 10895 levels. Possibilities stops hitting on both the sides needs to be evaluated on Monday trading session.

Bank Nifty Futures 30-min Consolidation

Bank Nifty Futures though it is consolidating currently trading very close to the long term balance and holding below 27600 levels as explained in the Multi timeframe analysis

Bank Nifty Futures – Market Profile Charts

Bank Nifty Holds a Poor Structure on 17th Jan. Inventory went long to too long. More short term buyers are crowded in the band of 27300 – 27600 zones

Stops got built below 27400, 27300 and 27000 levels in Bank Nifty Futures. Failure to sustain above 27600 is an indication of medium-term weakness and possibly 27000 could be the next destination in Bank Nifty Futures.

Volatility is expected to improve in the later part of the series as Union Budget 2019 is nearing. This compression which is happening currently is expected to end if 10840 and 27300 are likely to break on the downside.