Market Overview: Nifty 50 Futures
Nifty 50 Big Up & Big Down on the monthly chart. The market closed strongly bullish on the monthly chart and is now approaching the All-Time High. If the bulls fail to extend this upward move, a triangle pattern will be confirmed. On the weekly chart, Nifty 50 is still trading within the bull channel. This week, the market closed slightly bearish and is currently trading near the upper boundary of the bull channel.
Nifty 50 futures
The Monthly Nifty 50 chart
- General Discussion
- Traders holding long positions can continue to hold, as the bull leg is very strong. Exiting before a strong bear bar or consecutive bear bars would not be prudent.
- Traders who believe a trading range or triangle is likely should wait to sell until the market gives a strong bear close.
- Deeper into the Price Action
- The market has formed a V-shaped pattern (a big up and big down move), which usually leads to a trading range.
- Since the chances of either a successful bull breakout of the all-time high or a trading range are equally high, traders should wait for clear signs from the market.
- If the market starts forming small-bodied bars with weak follow-through, traders can begin treating it like a trading range. Otherwise, they can enter on a bull breakout and hold for swings.
- Patterns
- The market is trading within a possible triangle pattern. If it breaks out strongly on the upside with follow-through, the chances of reaching a measured move equal to the height of the bull leg will increase.
The Weekly Nifty 50 chart
- General Discussion
- Traders holding a long position should continue to hold, as the market is trading inside a strong bull channel.
- Since the bull channel is tight, bears should only enter near the highs of the bars using limit orders, instead of using stop orders at the lows of the bars.
- Traders not in any position may wait for the market to approach the bottom of the channel again to enter a long position.
- Deeper into Price Action
- The market is approaching the all-time high, which suggests that trading range price action will soon increase on the weekly chart.
- The market typically begins to show trading range behavior when it reaches key levels such as big round numbers, all-time highs or lows, or major support or resistance levels.
- Patterns
- Often, if the bulls achieve a successful breakout from a bull channel, the probability of a measured move up based on the height of the channel is high.
- However, in this case, the target might not be achieved immediately, as the bull channel is positioned just below the all-time high.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
