Market Overview: Nifty 50 Futures
Nifty 50 Weak Bull Close on the monthly chart. After an initial rise, the market experienced a sharp fall in the last week of the month, resulting in a weak bullish close. The market is also forming a triangle pattern. On the weekly chart, Nifty 50 is currently trading at the lower end of the bull channel.
Nifty 50 futures
The Monthly Nifty 50 chart
- General Discussion
- Traders holding short positions may continue to hold until the market gives a strong bullish close outside the triangle.
- Traders in long positions may hold their trades but should place a tight stop loss at the nearest swing low.
- Deeper into Price Action
- When the market makes a sharp move up followed by a sharp move down, it usually indicates that the market is trading inside a range or within a broad channel.
- Since the market is currently in a trading range price action phase, traders should adapt their trade management to the current condition. Instead of holding trades for larger swings, they should aim for quick exits before the market reverses.
- Patterns
- If the market breaks out of the triangle pattern on the upside, traders can set a measured move target based on the height of the triangle.
- After reaching the initial measured move target, traders can then set a new target based on the height of a bull flag.
The Weekly Nifty 50 chart
- General Discussion
- Traders in long positions may continue holding as the market is trading at the bottom of the bull channel. However, since the channel is not very broad, traders should take quick exits due to frequent reversals.
- Traders who shorted after the strong bear channel with consecutive bear bars may exit their positions, as the bears have failed to resume the trend even after two attempts.
- Deeper into Price Action
- If the bulls manage to form another upward leg in this channel, traders may assume that the bull channel has turned into a small trading range, where the top and bottom of the channel act as the trading range boundaries.
- Patterns
- In most cases, the chances of a successful overshoot of a channel are only about 25%, while the chances of a breakout are around 75%.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
