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)

BankNifty August Futures Market Profile Outlook

34 sec read

BankNifty Futures sentiment turned negative post the RBI Policy announcement. Profile distribution completely traded down below the Thusday’s Prominent POC which could act like a temporary short-term resistance. However, Thursday’s session also ended with the failed auction at the day high i.e. around 45142 levels.

The overall context is buy on dips if you are a mean reversion trader. For breakout traders price crossing above Thursday’s session holds the key to trade towards failed auction. Usually, a trade towards Failed Auction in Indices like nifty,banknifty comes with a target probability of 60-65%.

If you are a seller in this market then you have to be careful about your trading approach as the price failing to accept below 44400 is a sure sign of buyers gaining strength.

Traders who are looking for a low-risk trading strategy can adapt a bull put spread with breakeven at 44269 in the spot by selling weekly options contract 44500PE (ITM PE) and buying cheaper OTM Put option 43900PE

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)

What is Anchoring Effect? – Market Profile Tutorial

The anchoring effect is a cognitive bias that describes the human tendency to rely too heavily on the first piece of information offered (the...
Rajandran R
2 min read

Understanding Pullback Low – Market Profile Tutorial

Pullback Low is identified during trend days when there's a price movement in the late afternoon that counters the day's prevailing trend. This movement...
Rajandran R
1 min read

What is Market Tempo – Market Profile Tutorial

Market tempo, a nuanced yet pivotal concept in trading, is the rhythm at which market prices fluctuate over a given timeframe, influenced significantly by...
Rajandran R
1 min read

Leave a Reply

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