Market Overview: Nifty 50 Futures
Nifty 50 Near All-Time High. The market this week closed with a weak bull candle featuring a top tail, but it is still trading inside the bull channel. If traders manage to get a strong bull breakout with solid follow-through, a measured move up can be expected. On the daily chart, Nifty 50 showed a bull breakout from the cup-and-handle pattern, but there has been no follow-through yet. Since the market is trading near its all-time high, traders may see some trading-range price action in the upcoming week.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- Traders in long positions may continue holding, as the market has not yet reached the top trend line of the channel. They may exit only if the market forms consecutive bear bars or if a strong bear breakout of the bull channel appears.
- Traders who shorted during the reversal attempt may exit their positions because the reversal was too weak and did not get any follow-through.
- Since the market is trading just below the all-time high, traders who are not holding any positions should wait for another close before entering a trade.
- Deeper into Price Action
- When the market is near an important level such as a big round number, a 52-week high, or an all-time high, traders should expect trading-range price action.
- Patterns
- If the bears manage a bear breakout with strong follow-through, the chances of a large trading range equal to the height of the channel increase.
- If the bulls achieve a strong bull breakout of the channel, traders can expect a measured move up based on the height of the channel.
The Daily Nifty 50 chart
- General Discussion
- Traders who entered a long position on the bull breakout of the cup & handle may continue holding until the bears form consecutive bear bars.
- Traders who entered a short position may continue holding but with a tight stop loss.
- Deeper into Price Action
- The latest bear bar is the second reversal attempt by the bears. The next few closes will help show how strong this reversal attempt is.
- Patterns
- If the bulls successfully give a bull breakout of the cup & handle pattern, traders can expect a measured move up based on the height of the handle. If this target is reached, the market may then make another measured move up equal to the height of the cup.
- If the bears convert this bull breakout into a failed breakout attempt, the market will likely trade inside a range, with the low being the handle low and the high being the current swing high.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
