Bank Nifty Futures is running in one single direction from the 18th of July onwards since then it had gained more than 4500+ points in the current swing with a very little pullback. Sellers are under heavy frustration as the markets are not pulling back in their favor.
Quick Flip on 15min timeframe is running buy signal almost for a month. Current Buy Signal is running for more than 500+ bars which rank 7th in relation to the last 13 years of backtesting i.e statistically overextended.
On Tuesday both Nifty and Bank Nifty opened with a weekly gap due to strong global sentiments and post that markets traded lackluster with rotational trading most of the time. BankNifty’s initial rally got fizzled out and managed to rotate the rest of the day with little bearishness.
Bank Nifty Market Profile Charts
There are times an overheated market remains overheated for a longer period. However, when the short-term sellers showed up in Tuesday’s trading session immediate dominance is witnessed from the sellers which could lead to temporary selling pressure in Bank Nifty towards 38600 levels.