Nifty Futures on Monday opened tumbled below the support zone 11490-11510 levels and erased all the Friday gains by EOD. Friday Short-term Momentum Buyers were followed by Monday Short-term Momentum Sellers. India VIX is back above 14 handle with 11500CE, 11600CE & 11800CE writers in control so far. Downside pressure resume back posts Monday’s price action.
US Markets and US Index futures drop as US President Trump slaps a new tariff on China. Goldman cuts India stocks to market weight from overweight as risk/reward less favorable at current levels. Says valuations stretched, most expensive in Asia, trading at record 58% premia to the region; At these levels, equities have historically posted neg returns over next 3-6months. Goldman Sachs downgrades Indian equities for the first time in more than four years.
Nifty Futures Market Profile
Nifty Futures formed a prominent POC on Monday with value built lower that turns the market profile sentiment negative. Price is hovering around the short-term support level 11396. Any acceptance below 11396 could bring a test towards previous swing low which is also the failed auction low at 11296 levels.
Nifty Futures – Quick Flip
Quick Flip turned negative on Nifty Futures at the open and managed to close negative. Immediate resistance comes around 11426. Any sustained move past 11426 could possibly trigger a buy signal. Else Nifty Futures is likely to continue sell mode the whole of Tuesday.
Nifty Futures 4 hourly sentiment turns negative. Price maintaining below 11423 levels will add more pressure towards the 11300 levels. For any positive directional clues, Nifty futures has to sustain above 11423 levels.