Market Overview: Nifty 50 Futures
Nifty 50 Weak Bear Close on the weekly chart. The market is currently trading near the bottom trend line, giving traders a possible opportunity to enter long positions. Bulls attempted to break above the channel but failed to sustain the move. On the daily chart, Nifty 50 is trading within a bearish micro channel. The daily price action shows an expanding trading range, so traders should expect similar market behavior in the coming week.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- Traders holding a short position from the top trend line of the channel may exit on the next open or hold their shorts with a tight stop loss.
- Traders holding a long position may continue until the market gives a bear breakout with a follow-through bar.
- Traders not holding any position may wait for the next close. If the next close is a strong bull close, they may enter a long position expecting a bull leg up within this bull channel.
- Deeper into Price Action
- Over the past three weeks, the market has shown closes with small bodies and long tails, indicating trading range price action.
- Patterns
- If the bears achieve a breakout with a follow-through, the market may move down to the bottom of the bear channel and transition into a wider trading range.
- If the bulls manage a breakout with a follow-through, traders can expect a measured move up based on the height of the channel.
The Daily Nifty 50 chart
- General Discussion
- Traders holding short positions may continue with a tight stop loss. Since the market is currently in a trading range phase, traders should manage their trades accordingly, as if trading within a range.
- Traders not holding any positions may consider entering on a consecutive bull close or a High-2 setup.
- Deeper into Price Action
- The bear micro channel is strong, and the chances of a reversal before a second leg down are usually low. However, since the market is currently in a trading range phase, the probability of a V-shape reversal is as high as that of a second leg down.
- Patterns
- With this bear micro channel, the market has re-entered the larger trading range. As it is currently trading near the top of the range, the chances of a reversal are high.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
