Market Overview: Nifty 50 Futures
Nifty 50 Bull Channel on the weekly chart. This week, the market closed weakly bearish with a long lower tail. It is currently trading near the bottom trend line of the bull channel. On the daily chart, Nifty 50 is showing trading-range price action after breaking out above its all-time high.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- Traders who entered long when the market broke above the all-time high may continue holding their positions, as the bears failed to give a strong bearish close after the bull breakout.
- Traders who entered short when the bulls failed to provide good follow-through after the breakout may continue holding their short positions but with a tight stop-loss.
- Traders who are not holding any position may enter a long position on the next open or at the high of this week’s bar, as the market is trading inside a bull channel and the bears failed to give a strong reversal attempt.
- Deeper into Price Action
- The all-time high level is important, and when the market trades near such a key level, traders should expect trading-range price action.
- Patterns
- If the bulls are able to give a successful bull breakout of the bull 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 near the trading-range bottom may continue holding their position until the market reaches the other side of the range.
- Traders who are not holding any positions may wait for the market to reach the opposite side of the range and enter a short on a weak bull close or a strong bear close.
- Deeper into Price Action
- As the market is trading in a trading-range phase, traders should adjust how they manage their trades.
- In a clear trend, traders may enter a position and hold for swings, but in a trading-range phase, they should look for quicker exits instead of holding for swing moves.
- This is because sharp moves in either direction are common, increasing the chances of losing profits.
- Patterns
- The market is trading inside a range, which means traders should buy low and sell high while it remains within this range.
- Traders can enter in different ways. For example, someone looking to go long near the trading-range bottom may place a limit order at the low of a strong bull bar or use a stop order at the high of a bull bar.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
