Market Overview: Nifty 50 Futures
Nifty 50 Key Price Action & Breakout Analysis on the weekly chart. The market is currently trading within a wedge bottom and has not yet given a breakout. This week, it closed with a bearish candle that has a very small body. Traders should wait for the upcoming week’s close, as the market is in breakout mode. On the daily chart, Nifty 50 is trading near the bottom of a bearish channel, with an increase in trading range price action observed this week.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- The market is currently in breakout mode. Both bears and bulls attempted to break out of the wedge but failed to get a follow-through bar.
- Traders holding long or short positions should continue holding until the market breaks out in either direction.
- Deeper into Price Action
- Both bears and bulls experienced weak follow-through bars after attempting a breakout from the wedge.
- Over the past 20 bars, the market has been trading within a deep pullback, increasing the likelihood of either a trading range or a bear trend rather than a continuation of the bull trend.
- Patterns
- If the market gives a bearish breakout with a follow-through bar, traders can expect it to reach the measured move down, calculated based on the height of the wedge.
- If the market gives a bullish breakout with a follow-through bar, at the very least, it is expected to transition into a trading range, where the high of the wedge bottom will become the high of the range.
The Daily Nifty 50 chart
- General Discussion
- Traders holding short positions should exit if the market gives a strong bullish close, as the bears have failed to achieve a successful bear breakout of the double bottom.
- Traders looking to enter a position can go long on a strong bullish close, targeting the high of the bear channel.
- Traders already in a long position can continue holding but should exit if the market gives a strong bearish close.
- Deeper into Price Action
- The market is trading within a broad bear channel, meaning both bulls and bears can profit by selling near the high and buying near the low of the channel.
- Over the past 20–25 days, the market has shown strong consecutive bullish and bearish bars, increasing the probability of a trading range.
- Patterns
- If the bears manage to achieve a strong bear breakout of the double bottom with good follow-through, traders can expect the market to move lower, reaching the measured move down based on the height of the double bottom.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
