If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
Nifty and Bank Nifty hourly charts maintains the downtrend with resistance zone coming around 8366.9 and 19010.9 Trend will reverse to upwards direction if the resistance zone breaks on the hourly charts (on hourly basis). It should be noted that last Friday Dowjones ends with a -170 points after two big continuous positive streaks.
Nifty continues to be in the sideways mode on the hourly charts and Bank Nifty shows a good amount of trendiness compared to Nifty. Current support zone on the hourly charts comes around 8204 and 18526. Closing below the support levels might turn the trend towards the down side.
Nifty futures and Bank Nifty futures taken a steep fall from the peak and so far nifty is leading the fall compared to Bank Nifty futures. Current resistance zone on the hourly charts comes around 8287 and 18572. Closing above the resistance levels might turn the trend towards the upper side.
Market is playing the dead volatility game. If you are a classical technical analyst you would have noted that the monthly charts would have shown overheated levels. So thought of bring down the charts with smooth RSI indicator applied over the monthly charts of Nifty and Bank Nifty Futures. Not only the Indian Markets but most of the bull markets in other countries would have painted the similar picture. Every time markets comes with some overheated figure and Say Boo to the Investors.
The short term Market Sentiment(Index Futures) is ultra bullish and retail players are quite aggressive in nature in playing the index longs. Bank Nifty shows extreme sentiment and possibly could signal a short term top. And the overall volatility in the market is down and remains below sub 14 levels indicates naked players are in neutral state not much aggressive on naked longs/shorts. Banking stocks/index might show increased volatility as upcoming economic event RBI’s monetary policy review on December 2.
This week both Nifty futures and Bank Nifty futures ends on the positive note with a weekly gains of 36.55 points(0.43%) and 141.3 points (0.8%) respectively. The cheer the retail positive sentiments turned up. Economic Factors like Retail inflation down from 6.5% to 5.5%, Industrial production up from 0.4% to 2.5%
Nifty Futures continues its positions sell mode right from 24th September onwards and currently the resistance zone comes around 7997 .Reverse your position to positional buy mode if the resistance breaks on the hourly charts.. On Contrary Bank Nifty futures maintains the Positional Buy mode and currently the support zone comes around 15349. Reverse your position to positional sell mode if the support breaks on the hourly charts.
Nifty and Bank Nifty futures turned to positional sell mode on 23rd of September and currently the resistance zone comes around 8105.73 and 15840 respectively reverse your position to positional buy mode if the resistance zone breaks on the hourly charts.
Nifty futures reverse from its low of 7952.5 after US Federal Reserve at the end of a two-day policy meeting on last Wednesday, 17th Sep 2014, maintained a commitment to keep US interest rates near zero for a considerable time.
Market fallen down 100+ points and once again there is a flip in open interest 7600CE and 7700CE writers taken advantage by building higher open interest. There is a confused state among the call and put writers and the overall picture of the market is moving in a sideways direction.
Indiavix on the hourly spot charts is in positional Buy mode with supports coming around 15.22. Reverse your position to positional sell mode if the support breaks on the hourly charts. Probably the short term volatility could remain upside.