Nifty Futures dropped from 22020 levels towards the support zone 21600 levels. The short-term bullish view can be held on as long as the price manages to hold above 21600 levels. Trading Sentiment in the last two trading sessions maintained negative and short-term sentiment turned negative
Nifty and Bank Nifty Futures often trade independently, with Nifty’s movements showing less correlation to Bank Nifty and vice versa. The overall market volatility has somewhat decreased, as indicated by the India VIX stabilizing at levels above 14.
While the short-term market sentiment has shifted to a more negative outlook, the medium-term sentiment remains positive. Currently, Nifty is exhibiting a consistent upward trend in the weekly charts, maintaining this pattern for the past 10 weeks.
Wednesday’s price action ended below the value area and traders are getting short in the hole. Any price recovery could result in short covering from those weaker hand short sellers who shorted below the value area.
In which case does the price action turn into a weakness?
Positional weakness could happen if the price starts accepting below 21600 levels – the p-shape profile support zone.
Very short term expectation is Nifty to move towards 21680 – weaker reference levels.
