Market Overview: Nifty 50 Futures
Nifty 50 Trend Resumption Attempt on the weekly chart. This week, the market closed with a strong bull bar after last week’s weak bear close. This bull bar has broken the previous bar’s high, forming a high-1 breakout. However, traders should keep in mind that the all-time high is just above. The market is still trading within the bull channel. On the daily chart, Nifty 50 has formed a triangle following the bull spike. The market is currently moving inside this triangle, and because the distance between the top and bottom trend lines is wide, traders may treat it like a trading range.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- Traders in long positions may continue holding until the market forms consecutive bear bars or shows a strong bear breakout of the bull channel.
- Traders who are not holding any positions may wait for a bear breakout of the bull channel to enter a short. Otherwise, they can enter on the next open as the market has given a high-1 bull breakout.
- Traders who shorted on the previous bear close may exit their short positions. They may also hold their positions with a tight stop loss, as the bears have not shown strong follow-through after the reversal attempt.
- Deeper into Price Action
- Bears tried to reverse the bull leg but failed to create strong consecutive bear closes. Since the market is trading near an important level, traders should expect some trading-range price action in the coming week.
- Patterns
- As the market has given a high-1 breakout, traders in long positions may set a target based on the leg-1 height.
The Daily Nifty 50 chart
- General Discussion
- Traders in long positions may exit as the market has reached the top trend line of the triangle. However, since the bull leg is strong, traders who do not want to miss the bull trend may continue holding their long positions with a tight stop loss.
- Traders who shorted on the low of the previous bear bar may exit on the next bar if it opens above their entry price. They may also hold their position with a tight stop loss, preferably at the high of the signal bar.
- Deeper into Price Action
- Overall, the market is trading inside a large trading range, so traders should avoid holding positions for too long and instead look for quick exits before a reversal occurs.
- Patterns
- If the market gives a bull breakout of the triangle with a good follow-through bar, traders can expect a measured move up based on the height of the triangle.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
