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)

Nifty Futures – Short Term Outlook – Market Profile

32 sec read

From the market profile charts, we could derive the market context for the short term. The current state of the market indicates that the last two days of price action are dominated by momentum traders with no inventory adjustment in place.

Last Friday dominant buyers got active around Thursday’s high and late momentum traders took the price to the high of 21589 levels resulting in a late spike. Fresh longs added up on Thursday’s trend day with long-term players participating sector-wide.

Spike Rules applies on Monday trading session.

  1. Acceptance below the spike could result in high-confidence selling. Friday’s Spike base comes around 21470. Short-term positional weakness is expected if more time price spent below 21470 levels
  2. Rejection at the spike base could keep the price balancing between spike high and spike base.

Even though the markets are overheated in the short term. medium-term outlook remains bullish. Means any short-term inventory adjustments will bring buying opportunities.

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)

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