Nifty Futures Monday session started with less of an excitement. Monday morning has broken Friday’s low however trading continues to be lackluster and activity started balancing around 11960-11980 levels. Very less amount of excitement is seen on Monday trading session from market participants.
Both Major macro announcements GDP & RBI Monetary Policy Announcement is over. At this point markets reacted moderately negative to both of the macro events. And to everyone surprise, RBI kept the Interest Rate unchanged.
Nifty Futures on long liquidation phase on the first half of the Friday trading session and the second half is more focused on balancing around 3 days low. The day ended with a failed 3-day break and the price managed to close above the single print zone 12080 levels near to EOD.
Nifty Short term trend continues to be in a positive zone with an immediate single print support zone comes around 12080 and 12125 levels. However first week of December series is likely to be a cautious uptrend as macro events like GDP Announcements & RBI Policy announcements are nearing
As discussed in the Option Volatility Strategies Webinar, Long Straddles option strategies are not frequently used trading strategies due to the nature of premium decay in options. Long Straddles can be initiated when the trader is expecting a sudden surprise price action (most during events) or strongly implied volatility pickup, Near to Expiry with potential Gamma price action moves.
Volatility is Dead in November. The intraday trading range got drastically reduced throughout the days of Nov 2019 series. Could be frustrating most of the directional traders. 10 Day ATR of Nifty Futures is at the lowest level for the year 2019. Will the volatility ever will revive? This post will try to study Nifty Futures volatility and understand volatility compression and expansion and how it helps traders to stick to reality.
Bank Nifty is currently trading at the swing extreme with 10-day ADX holding above 40 levels which indicates extreme positive sentiment with mean reversion odds If ADX value likely to start sliding below 40.
November series is thus far a dull series with reduced volatility and interestingly price started trading in a range between 11800-12050 levels since 30th Oct 2019.
Last two weeks the major theme in the markets is Crazy volatile swings. Crazy intraday swings in the market would make trading complex for most of the traders during those days.
Trading money is a webinar on how to build context using market profile and orderflow and how to use to those context to understand how other market participants are positioned and how one can use those information to prepare for the upcoming trading days in Nifty Futures and what one can expect from the market generated information.
Indian Finance Minister Nirmala Sitharaman announces corporation tax rate cuts and slashed to 22% (effective rate 25.17% including cess and surcharge) and that’s the Internation news, probably the most favorite talk among the media, traders, investors, promoters and almost every market participants this weekend.
The current sideways markets running in Nifty Futures is almost 48 days old. And consolidated between 10800 – 11145 levels most of the time.