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 Futures Higher Timeframe and Market Profile Outlook

1 min read

I guess Nifty is in a make or break zone as the higher timeframe range is getting tighter & tigher. The United States and China slapped tit-for-tat duties on $34 billion worth of each other’s imports on Friday, with Beijing accusing Washington of triggering the “largest-scale trade war”. Despite the negative news factor, Asian markets (China, Hang Seng) recovered the early losses and closed positive.

Nifty Futures Weekly Charts

Stories aside. If you compare the higher timeframe price patterns on the weekly timeframe. Last 5 weeks something interesting is going on the Nifty Weekly High Levels.

This Week – 10816.7
Last Week – 10819.9
3rd Week – 10849.0
4th Week – 10873.5
5th Week – 10814.0

Selling coming at tightly packed zones. If you look closely sellers are more relevant than the buyers here on the weekly timeframe. Buyers are coming at every price levels. Sellers are defending only at specific price zones.

One possibility we can look through is sellers are creating a ceiling effect and buyers who are coming at every prices are struggling to get through. Failure to get through the band 10820-10873 is something seriously need to look into it. On the downside 10723 still holds as an active support zone. Support zone got tested on friday with responsive buyers piling in( FYI, Fridays Bottom is made in the 1st minute).

From the profile perspective most of the cluster stops got taken out. However price on the weekly charts ended up as an inside bar and one timeframing down on the weekly timeframe.

Nifty Futures Market Profile Charts

Price opening gap down below 10723 on Monday which could turn the daily sentiment negative. Price closing below 10723 is something which is not a good higher timeframe sentiment as already weekly sentiment maintains in a negative mode for last two trading weeks.

Fridays haven’t left any clue on the directions as most of the Fridays ends with the puzzle leaving the market participants to think how this markets will shape up. Put writers on Friday raised their stakes at 10700 & 10600 strikes anticipating support for this series. Most of the series we can derive intelligence from where put writers are concentrated. If at all 10723 levels have to break first only an local/global event can break it and take this market downside.

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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