Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty Futures – Inventory getting short to too short

53 sec read

Nifty Futures Market Profile Charts

Nifty Futures on Wednesday trading session exactly respected at the Tuesdays prominent POC and also selling continued at days open. Day ended with a spike with a poor structure combination indicating a potential pullback towards 10540 levels as the short term trading inventory goes short to too short. Current swing low is not secured yet (will be revisited in a very shorter term).

However, if this pullback failed to close above the short term spike base zone 10482 levels on EOD basis weakness will prevail which could target Nifty towards the next weaker reference levels 10400, 10280 and 10150 levels on the downside.

Wednesday’s trading activity showed momentum sellers right from the beginning with late emotional sellers getting short to too short. Possibly they are the first one to panic and exit if any potential short covering above 10480 levels.

Nifty Futures Volume Delta Candles

10500 Put writing is the most of the players looked out on Wednesday’s trading. Typically when a key reference level fails often market probes to look for any buying around that zone. Buyers fail to arrive above 10500 levels or price failing to close above 10500 levels are the key weakness that this market is likely to go down further.

Key point to remember. In a long liquidation phase put writers are mostly weaker hands. Thus far put writers patience at 10700, 10600 & 10500 are tested. If the liquidation is going to continue further then this market might not be a put writers paradise at least for the current month.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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