Nifty Futures for the entire month has been rotating in a broader range i.e the range established on election results day (11640.2-12070). It is almost a month where the price is circling around this zone and the entire activity is mostly dominated by short term players.
Nifty futures on Daily timeframe formed excess on election results day. Excess is the end of one auction and the beginning of another auction. However last Friday there is a failure to follow thro post the Excess and ended as an inside bar and still, the focus on the excess setup remains invalidated.
The big week filled with events is about to start and its good time to have a check up what happened so far in this week and what is the current state of the market and what is the context going on.
How long this sideways price action in Nifty Futures is likely to continue? I guess the same thing might be running through your mind as well.
April Expiry is near and so lot of expectation from the trading community. India VIX jumped to 24 levels however markets are still moving a very narrow range for this expiry. Nothing much really happened since the start of April Expiry. So far the entire expiry traded in 250 point range i.e less than 2.5%
On Thursday Nifty Futures opened with the extreme sentiment (gap up). However, Nifty Futures failed to keep the buyer’s enthusiasm up and turned towards the previous days low and completely reversed all its gains in the early morning trading.
Nifty futures so far in April series moving a very narrow range and 10 day ATR is around 110 levels and volatility is on the falling side.
Nifty Futures Friday Sentiment ended extremely on a 5min timeframe which is not a good sentiment for a follow thro rally. Quick flip supports for Monday coming around 11734. Price started accepting below 11734 brings more of downwards correction towards 11640 levels and lower.
Nifty currently trading around 11521 in Nifty spot making a one-way rally straight away from 10580 levels made during 19th Feb 2019.
Nifty is spending in a broader consolidation range for the last three months in the band of 10600-11000 levels. Now its been nearing critical Quickflip resistance level 10960 on the hourly timeframe.
Nifty weekly Options are likely to be introduced by Feb 11th 2019 onwards. Nifty is likely to some volatility out there to attract more speculators to trade the newly introduced weekly options. Gear up for some wild volatility in the upcoming weeks. Already PRBATR shows increasing volatility in the past one week.
How do you read the charts when you see multiple formations of Higher low formation on any given trend? How do you read charts where the trend is evolving slow and steady and not willing to given or at least more difficult to break its previous swing low formation?