The Nifty Futures October series is witnessing a consistent influx of short-term sellers on a daily basis. Over the past four consecutive trading sessions, these sellers have been dominating the market. As a result, the short-term trading inventory has become excessively short, resembling an oversold condition.
Nifty October Futures
As we are in transition from the October series to the November series, it is good to pay attention to the November month contract. November month Market Profile charts show R-PPOC at 19667 levels and AB Poor High at 19450 and 19700 levels.
Nifty November Futures
Temporary support for the Nifty Spot is anticipated to hover within the range of 18800 to 18900. It’s worth noting that Nifty Futures recently breached the previous quarterly low, which is not a favorable sign for bulls in the medium term. Nonetheless, short-term rebounds are projected in the direction of 19200 and 19450 levels in the November month contract
As of the current writing, the India VIX has surged to 12.16. However, it’s important to note that volatility remains relatively subdued when compared to the US CBOE VIX at 20.19. The market sentiment is cautious due to the increasing yields in the US 10-year bond market. Recently the US 10 Year Yields spiked to 5% which is perceived as a negative sentiment across global markets.
US 10-Year Yield
What do you think? Is the temporary pullback on the cards despite market showing negative sentiment?