Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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 Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Political Shocks and Market Crashes: Lessons from Argentina for…

In an unexpected turn of events, the Indian stock market experienced a dramatic crash today following the announcement of the Lok Sabha election results....
Rajandran R
1 min read

Navigating Volatility Ahead of Final Election Results

As the Indian market approaches the final election results on June 4, 2024, volatility has been a key feature of market behavior. This period...
Rajandran R
1 min read

State of Nifty Options and ATM Straddle ahead of…

Exit polls suggest a strong performance by the NDA, with seat predictions ranging from 358 to 400, compared to 353 in the 2019 results....
Rajandran R
2 min read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More