Market Overview: Nifty 50 Futures
Nifty 50 All-Time High Breached. The market delivered a strong bullish close this month and is now trading near the top of a wedge. For a confirmed breakout above the all-time high and the wedge, bulls need a strong breakout bar followed by a follow-through bar. On the weekly chart, Nifty 50 is trading within a bull channel, but this week, the market failed to give a strong bullish close. The channel is wide enough for both bears and bulls to trade – selling near the highs and buying near the lows.
Nifty 50 futures
The Monthly Nifty 50 chart
- General Discussion
- Traders in long positions may continue holding but with a tight stop-loss, or exit if the bulls create a failed breakout (a bull breakout without a good follow-through bar).
- Traders who are not holding any positions should wait for the next close before entering a trade. If the market gives a bull breakout, they should wait for a follow-through before entering long.
- Deeper into Price Action
- This is the second attempt by the bulls to break the all-time high. The previous attempt failed, resulting in a small pullback.
- Patterns
- If the bulls manage a strong bull breakout with a follow-through bar, traders can expect a measured move up based on the height of the wedge top pattern.
The Weekly Nifty 50 chart
- General Discussion
- Traders holding long positions from the bottom trendline of the channel may continue to hold with a tight stop-loss, as quick reversals are common in channels and trading ranges.
- Traders who are not holding any positions may wait for the market to give either a bull or bear breakout of the channel.
- Deeper into Price Action
- The market recently breached an important level. If the bulls fail to give a strong follow-through bar, traders can expect the market to move sideways for a few bars.
- Patterns
- If traders get a bear breakout, they can expect the market to form a larger trading range equal to the height of the channel.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
