Nifty Future Top Down Analysis – DEC 2016 update

Top Down Approach provides us the macro visual perspective of the market participation. We will start with monthly charts to understand the long term participation, weekly charts to understand the intermediate term players and the daily charts to understand how the shorter timeframe players are behaving.

Nifty Future monthly charts

Nifty future monthly charts shows there is a complete mood swing from the long timeframe participants 6 consecutive onetimeframing down months (from OCT 2015 – FEB 2016) followed by 7 consecutive onetimeframing up months (MAR 2016 – SEP 2016) and again 4 months of onetimeframing (SEP 2016 – DEC 2016(till date) ). currently Long term trend is down and largely driven by FII’s selling in the primary market.

Nifty Future Weekly Charts

Weekly charts shows how the intermediate players are positioned. Nifty futures is revolving in a tightly packed band of 8000-8300 zone for last 6 weeks which shows the lack of dominance from intermediate timeframe players.

Nifty Future Daily Charts

Nifty Future Daily Charts shows the dominance of short term sellers in control but still moving in the range of 7920-8300 zone on the daily charts. On the Day timeframe charts markets are onetimeframing for the last 6 consecutive days. As long as the market trades in this range one can assume that only short term players are in control. A break either upside or downside could reveal the presence of other higher timeframes.