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 – Sideways Balancing to Continue?

1 min read

How long this sideways price action in Nifty Futures is likely to continue? I guess the same thing might be running through your mind as well.

Nifty May Futures balancing for the entire April series.
Nifty Futures – Hourly Charts

Could this sideways action run till election results?
I don’t think so. Market Should show some directional price action before elections.

This market could be totally frustrating if one is not able to manage their expectations in the markets. Or if you are looking for some sort of directional price action movements and markets are not elongating in traders favor.

Such kind of frustrations can be overcome only if you learn to manage your expectations in the markets or possibly cultivate a habit of learning to trade in sideways markets or A trading process which keeps your emotions and expectations in control to be a profitable trader during such weird market circumstances.

Market Outlook

Nifty Futures opened with a moderate bullish bias on Tuesday however it got quickly sold off due to the yes bank selling pressure. Most of the yesbank drop came in the first 1 hour of trade.

It is a news based sell off in Nifty Futures and most of the price drop is Nifty and YesBank is done in the first hour of trading on Tuesday trading session.

YesBank – Hourly Future Charts

Nifty Futures – Top Down Analysis

•Monthly – One timeframing
•Weekly – 4-Week Balancing
•Daily – Balanced for entire April 2019
•Hourly – Balancing with VPOC around 11726-34 levels

Implied volatility is maintaining for this series currently around 20-24 levels at the start of May series. Maintaining this band brings lot of intraday volatility which benefits mostly intraday option players. Any increase in the momentum of Implied volatility is a further added advantage for the intraday directional option players.

Nifty Option Open Interest

Nifty Options May monthly options currently highest open interest is visible at 11000PE and 11600PE levels.

Nifty Futures – Market Profile

Nifty Futures – Market Profile Charts

Nifty Futures formed a balanced pricing structure on Yesbank Sell off day where the days bottom is done in the first hour of the day following a 2-day low break. If is a Prominent POC as well at 11750 levels. Failed Auction on 24th Apr 2019 in Nifty May future contract so far completed t+4 trading days. Possibly any price action further down below 11726 could bring a test towards 11660.

Going by the above factors one can initiate short if price starts accepting down below 11726 levels for a test towards 11650 and 11600 levels. One should shorting NF if price holds above 11726-11734 price band.

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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