Nifty Futures during the last couple of days are switching back to increased volatility. ATR is a greater measure of volatility. Because of the recent volatile swings and big gap ups and downs the daily volatility level spiked to 258 levels. Which is a cause of concern.
From the Market Profile Perspective Smart Money traders aka dominant traders, they move the market 29th and 30th Aug 2022. Though the traders are showing signs of strength temporarily it is more of a temporary uptrend that mostly results in profit booking.
Such a profit booking activity generally means reverting to the zone where the smart money (short-term activity) started. Repeatedly such nuance in the markets very often generates short-term trading opportunities. In this September series the odds of price revisiting 17450 and 17250 levels increases a lot.
Last Tuesday (30th Aug). Nifty futures had left a poor high followed by downward price action on Thursday. Which is a early sign of trading inventory getting long to too long. In simple terms the markets are overheated.