Nifty currently trading around 11521 in Nifty spot making a one-way rally straight away from 10580 levels made during 19th Feb 2019.
Nifty is spending in a broader consolidation range for the last three months in the band of 10600-11000 levels. Now its been nearing critical Quickflip resistance level 10960 on the hourly timeframe.
Sideways markets occurs if there is no real interest neither from the buyers nor sellers. Lower trading interest results in lower transaction volume. If the sideways action attracts huge volume possibly it could be due to institutional accumulation/distribution.
Nifty Futures is currently maintaining sell mode on 5min timeframe. Post hitting the extreme sentiment intraday around 10.00a.m price in very short term trying to recover from intraday losses.
Nifty weekly Options are likely to be introduced by Feb 11th 2019 onwards. Nifty is likely to some volatility out there to attract more speculators to trade the newly introduced weekly options. Gear up for some wild volatility in the upcoming weeks. Already PRBATR shows increasing volatility in the past one week.
How do you read the charts when you see multiple formations of Higher low formation on any given trend? How do you read charts where the trend is evolving slow and steady and not willing to given or at least more difficult to break its previous swing low formation?
Nifty Futures and Bank Nifty Futures are trading in a sideways compression mode for quite some time in Jan 2019 series. Both Nifty Futures and Bank Nifty Futures are trading very close to the current swing high levels.
Here is the Top Down Analysis or Multi timeframe Analysis on Nifty Futures and Bank Nifty Futures to get a bird eye perspective and not to miss the bigger picture
Nifty is had a crazy volatile day. Huge downswing followed by a steep recovery during mid of the day. And on the 15min timeframe quick flip trading strategy got into long mode in the last 30min of trading session with quick flip supports coming around 10830-10850 levels.
Nifty futures is currently trading in a sideways band for the last three trading days. Liquidity is almost dried up in the last three trading session. However last hour of trading shows some volume ramp with trading sentiment getting into extreme (pink bars).
The Year 2018 is about to close and only three more trading session left this week as well as this year. It is interesting to have a sentiment check on the weekly timeframe to identify medium-term bias.
Bank Nifty Futures tested an intraday high of 27425. Trading sentiment was getting into extreme which possibly indicates overbought levels.