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.
Nifty Futures is tested an intraday high of 10924. Trading sentiment was getting into extreme which possibly indicates overbought levels.
Nifty futures holding its buy mode for the last 4 trading session with quick flip support coming around 10803-10814 band. The trading focus is positioned on the bullish side with possible expectation around 10880 levels and 10930 levels.
Bank Nifty turned to positive buy mode with immediate quick flip supports coming around 26216-26246 band. As long as the support band holds momentum is expected on the upper side in the near term with 26449 and 26732 levels in near term.
Nifty futures is showing extreme indications with quick flip currently in sell mode. Resistance upgraded to 10667 band. Price holding above 10667 could bring a possible test towards 10725 levels and 10800 levels.
Nifty Futures is continuing its uptrend and approximately made 4% in the last 6 trading sessions. Immediate supports are coming around 10910 levels. Price sustaining below 10910 levels could bring a short-term downtrend towards Friday low i.e 10857 levels. Currently, quick flip uptrend on 5min charts is almost more than 1800 trading minutes old which is an outlier going by historical stats of quick flip holding period
Out of 28 sectors/indices that we are monitoring 25 sectors, daily sentiment turned negative since last Wednesday and only 3 sectors (Media, Pharma, Realty) are holding with positive sentiment. And Most of the sectors which tested above 200 day MA got back below 200 MA last week. Currently sectors like pharma, FMCG, Fin Service are holding above 200MA.
Nifty November futures post emotional buyers dominance took a 100 pointer on the downside. Trading sentiment turned down on the daily charts with immediate quick flip resistance comes around 10663-10674 band. Trading Focus remains down as long as the price is able to hold down below the immediate resistance band. Short term focus on the downside is towards the 10640 and 10580 reference levels.