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 Monthly Charts are Overheated

1 min read

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Market is playing the dead volatility game. If you are a classical technical analyst you would have noted that the monthly charts would have shown overheated levels. So thought of bring down the charts with smooth RSI indicator applied over the monthly charts of Nifty and Bank Nifty Futures. Not only the Indian Markets but most of the bull markets in other countries would have painted the similar picture. Every time markets comes with some overheated figure and Say Boo to the Investors.

Nifty Monthly Charts
Nifty Smooth RSI

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This time the Smooth RSI levels of Nifty and Bank Nifty futures values comes around 96.41 and 91.58 levels. Charts also shows the Smooth RSI values during the peak zone and the current Smooth RSI levels are at record high levels. And Interestingly Bank Nifty closed positive for 9 consecutive weeks. And the IndiaVIX at sub 12 levels again which indicates that there is no fear/panic in the markets at this point of time.

Bank Nifty Monthly Charts
Bank Nifty

Nifty Options Overview
Currently December Nifty Options Open Interest Picture shows 8500PE has higher open interest and also 8600PE and 8700PE almost have the equal amount of open interest as of 8500PE which indicates that option players are betting on either side and the market could break either side more violently with increase in volatility.

Open Interest (2)

Disclaimer : Marketcalls is not a Research Analyst we are more into Financial Data Analytics. The Data Analytics provided is here for more of educational purpose not to treat as a Buy/Sell Recommendation. If you are doing it then to it at your own risk. Neither Marketcalls nor the Guest Authors are not responsible for the losses incurred. We Neither Provide Tips nor provide Trading Recommendations

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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8 Replies to “Nifty and Bank Nifty Futures Monthly Charts are Overheated”

  1. Hi Raj,
    How do you compare supertrend with nrpr system. Is the former for multiframe strategy and nrpr for swing trading. How does nrpr perform in multi time frame in 5 minutes chart

    1. You cannot simply compare apples with oranges. Each and Every Trading system has its own uniqueness. Its your understanding about the trading system which tell which is the right trading system according to your trading style and the willingness to take risk.

      1. If I understand correct, what you are saying is a particular trading system with a set of parameter is tailor made for the following,

        – for a stock or index(unless ( back test for another stock/index does not yield similar results)
        -for particular trading style
        -for a particular risk profile
        -for a particular type of market

          1. Bringing more clarity, closing the open end
            Trading style here means,
            – Stop and reverse(follow the charts) or
            – Pick and choose(combine signals with news or events) or
            – swing trading(weekly, biweekly or capture the entire trend ) or
            – Intraday trading (strictly within market hours)
            – not sure of others
            risk profile means
            – capacity to bear the multiples of atr 1 or 2 or 3 or 4.
            Type of market means
            – rising vix market
            – falling vix market
            -not sure of the others
            also not sure whether a TS is bound to a particular chart interval.

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