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)

Short Covering from an Extreme Short Term Inventory – Indicates weakness – Market Profile

22 sec read

Nifty trading inventory goes short to too short as on last Monday trading session followed by a short-covering rally and this inventory adjustment process brings the exits of weaker hand shorts out of the system. However, this short-covering could weaken the market.

Market Profile chart shows that the immediate trend is positive. However structural positional weakness do persist which could bring short term trend reversal to downside

Possible Higher odds of Nifty getting back to 15200 or lower in this series. Any rally from here will be seen as temporary uptrend and odds of higher that this series we could see one more fresh low for the month.

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)

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