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 – Volatility is the Keyword – October Futures

1 min read

October month started with high volatile movement in Nifty Futures where it swings between 10857 – 11090 during Monday trading session. But don’t be surprised with such sort of wild volatility swings. On the higher timeframe (Daily Charts) Nifty is still in a sideways mode as last 7 days in a row Nifty Spot tested 11000 levels regardless of where nifty went, which makes the positional trading difficult to hold on to your conclusions. Welcome to the psychological reference game.

The upcoming RBI policy decision on 5th Oct 2018 could be the possible key for a volatility crash. Until then one should maintain a low profile on positional call longs in options if you are a naked option trader. It mostly gets hurts if traded positionally and VIX started crashing on the other side.

Nifty Futures quick flip strategy continues with positional long. However, the price ended closed at the extreme zone. Pink bars(Extreme indication panel) are often a good partial profit booking zones as often it brings very short term reversals at those pink bar zones. Current quick flip support zone comes around 10983 levels. Any price acceptance bellow 10983 could move quick flip to sell zone again.

Nifty Futures 5min Charts

Nifty 10-day ATR at 152 levels that explains the wild volatility swings. OI writers crowded for this series at 10800 levels and mildly crowded at 11000 levels as well.
Nifty Futures daily sentiment turned positive post the late price spike on Monday trading session

Nifty Futures – Daily Sentiment

Re-iterating what I said in the last article, “As I always insist that trading around the psychological round number figures are not going to be easy to hold positional traders. Holding the trades for very short-term works here. Let the volatility crash and let the market bottomed out. Until then keep playing the very short-term moves in the market.”

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)

Things you need to know before trading OTM Options

There is a saying that OTM options are for gamblers especially those who are blindly betting on cheaper options. And this post explores how...
Rajandran R
2 min read

Nifty Overheated and Will Nifty Pullback?

Nifty is racing towards an all-time high and in the current swing most of the price action happens in the form of gap up...
Rajandran R
30 sec read

Bank Nifty Futures – Market Profile Charts and Overheated…

Bank Nifty Futures - Market Profile Charts and Overheated Emotions - September Series
Rajandran R
18 sec read

Leave a Reply

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