Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Whats in the mind of the market?

58 sec read

Most of the days in July has been ended in sideways fashion for Nifty especially between the 5EMA(High) and 5 EMA(low) line. Almost all the Out of the money calls and puts expires worthless. As there is a popular saying that “Most of the time the movement of market’s direction will cause maximum pain to maximum people”. Its really a tug of war between both the bulls and bears. As both the bulls and bears had relatively exhibiting equal strength,the rope will stay pretty much in the same place. And the resulting force is zero and there is relatively no change in motion either of the direction. which would really irritated -both the bulls and bears.

 

As of now The daily chart of nifty is in buying mode for more than a month and currently the hourly signals are pretty weak. Also the Open Interest data for Nifty paints a bearish signals due to high open Interest figures in 5500CE and 5600CE Aug Series. Which strongly symbols that Bearish Call writers are confident of the Capping 5600 atleast for August series. Which relatively speaks that bullish operators are not enough confident on the upside for time being.

What is the minimum requirement for the bullishness to continue?

For time being nifty is trading below the weekly 5 EMA high level(5421) which is also the ichimoku hourly resistance range. But even if bulls are manage to cross 5421 on EOD basis the overall outlook for this august season could once again remains sideways as Huge open interest built up near 5500 CE and 5600CE guards the upward movement of the nifty.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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