Nifty spot bounced of from 3rd Standard deviation extreme band signs of caution for positional shorts out there as it historically indicates a kind of oversold markets with a greater odds of a bounce back in the short to medium term. Lack of sellers confidence is an opportunity to fade those sellers in a very short term. Current extreme indications come around -7.4.
Nifty futures on the daily timeframe shows extreme indications as it tested the 3 Standard deviation band on Thursday, September expiry day. Sideways to short-term pullbacks are expected if Nifty Futures is able to hold quick flip short-term support zone 10959 level.
Recent days Bank Nifty Futures are under extreme pressure as it had so far lost 11.5% for this month alone breaking the 4 month low or roughly more than 3300 plus points of correction in Sep 2018 alone. Quick flip is in sell mode since 17th Sep 2018. The crash in Bank Nifty is mostly driven due to overvalued Private Banks, USDINR currency crisis and other local factors.