Last week nifty futures completely entered in a sideways mode. The entire 5 trading sessions ended up in range-bound price action between 12318 – 12412 levels. Too many short term buyers competed in the last three trading sessions building a short term support band in the range of 12318 – 12340 levels.
Last Friday trading started with a news based selling followed by an early morning pullback. Lower volumes contributed to the dull boring markets throughout the Friday trading session which failed to bring a yet another all-time high.
The short-term trading sentiment is holding positive and the price is trading near the critical support zone. If price breaks the balance and trading above the balance is positive for the immediate short term. Or any break down below 12340 levels could bring short term liquidation from the short term traders to a possible destination trade towards 12240 levels on the downside.
At this point in time trading range for this series is likely to be around 12000-12500. Any upper side breakout from the balance is likely to expand the range to 12000 – 120700 levels for Jan 2020 expiry.