Bank Nifty turned to positive buy mode with immediate quick flip supports coming around 26216-26246 band. As long as the support band holds momentum is expected on the upper side in the near term with 26449 and 26732 levels in near term.
Nifty November futures post emotional buyers dominance took a 100 pointer on the downside. Trading sentiment turned down on the daily charts with immediate quick flip resistance comes around 10663-10674 band. Trading Focus remains down as long as the price is able to hold down below the immediate resistance band. Short term focus on the downside is towards the 10640 and 10580 reference levels.
A lot of weird things happened during Wednesday trading session. Nifty Smallcap closed positive while Nifty Spot lost more than 150 pts. India VIX spiked above 18.12 levels.
Prevailing Italian crisis, USDINR Hitting all-time high, Weak Asian Markets & Brent crude near 85 USD per barrel. Nifty started underperforming Bank Nifty Futures largely due to Nifty Auto and Nifty IT sector as it is down 2.94 and 1.87 respectively. Two more trading days left for the RBI policy to kick start. Despite all these drama Nifty Futures ended as an Inside bar.
October month started with high volatile movement in Nifty Futures where it swings between 10857 – 11090 during Monday trading session. But don’t be surprised with such sort of wild volatility swings. On the higher timeframe (Daily Charts) Nifty is still in a sideways mode as last 7 days in a row Nifty Spot tested 11000 levels regardless of where nifty went, which makes the positional trading difficult to hold on to your conclusions. Welcome to the psychological reference game.
Nifty Futures continues to survive minor negative waves. The immediate short-term trend is positive with supports coming in 11713-11720 range. Global Markets sentiment ended moderately positive except the European indices on last Friday. Key economic indicator India Q1 GDP growth soars to a 9-quarter high of 8.2% Vs 7.7 Quarter-on-Quarter basis. This is the highest growth in two years and strongest since the first quarter of 2016.
Nifty Futures finds its resistance around 11505 levels and on Friday trading session both indicator and profile trading sentiment turned negative. Momentum sellers controlled the day which makes the trend positionally down towards the next stop zone 11386 and the previously unfilled gap reference 11180 and the G2 Low reference 11117 levels.
Every active stock market investor wants to know: Where are prices headed next? Most will scour the financial headlines, tune into financial television and talk to their broker or financial advisor in hopes of finding the answer. But, alas, this quest for market insight often leaves investors just as uncertain as before.
Markets are naturally designed to be rough & tough. However, not designed for linear logical thinking. Todays Trading session in Nifty and Bank Nifty Futures is clear example for how complex information we are dealing with.
Bank Nifty Futures consecutively making lower lows for the last 5 trading session on the daily charts. Price breaks the previous week low and in the last 1 hour of the trading session manage to close above friday low (Previous Week Low as well). Trading Sentiment continues to be negative as long as price holds below 25242 levels. Mondays price attempt closed the 1st Nov Gap.
Yet another 3 day balancing and slowly moving unproductive days for a positional trader in Nifty futures as it trades in 10360-10420 range for the last 3 trading sessions. Interestingly stops again got built around 10420 post todays panic intraday drop towards 10360 levels.
Last two days Nifty futures made a down swing of approximately 200 points (from 10530 to 10330 levels). Interestingly on the weekly charts nifty had made a outside bar with a low confidence breakout. It looked below the previous week low 10350 and failed to accept below previous week low on EOD basis.
Nifty found short term resistance around 10500 zone and currently in the phase of short term correction. Trading sentiment and profile sentiment both turned to negative mode which brings more downside pressure for nifty in the very near term. On the downside 10350 and 10248 are the two major focus levels to watch in the very short term.