Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Nifty Futures – Apr 2024 Future Contract – Positional Outlook

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Nifty Future Market Profile chart shows a sideways broader balancing structure in the last 5 trading session. However 4th Apr structure is indeed important as it truly brings a sharp responsive buying with strong excess on the daily structure indicative of a support zone around 22420 levels. Temporary Dominant Buying supports also coming around 22510 levels which got created as on last Friday session.

Balance Trading Rules Applied on Nifty Apr Futures

1)If the price breaks outside the 5 day balance and starts accelerating it could result in more positional breakout trading odds

2)If the price breaks and pullback into the balance then one have to look for a look above the balance and fail where the destination target is towards the other side of the balance.

What we can Understand from Top Down Analysis?

1)Daily and Weekly Sentiment holds positive. Which favors positional put spread selling.

2)Weekly and Monthly trend remains positive and Daily trend is in sideways structure for the last 5 trading session.

3)India VIX remain muted at 11.34 despite election event is upcoming

4)ATR levels are slowing down from the peak. Possibly slow grinding intraday price action with most of the price action happening in the form of gap up or last hour price action mostly. Not a best place for positional option buyers.

What to Anticipate Positionally?

Nifty formed a very important support around 22420 levels. with that level as major support in consideration. we can extend the market profile based price targets to higher all time high. Any price breakout from the 5 day balance and accelerate could bring the price action towards 22850 and 23100 levels in short term.

As we are in the start of the earning season more intraday volatility and difficult intraday price actions are anticipated. Better to have a controlled thought process which could avoid overtrading. Trade only the pattern that you see and avoid the urge to trade the markets frequently.

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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