Market Overview: Nifty 50 Futures
Nifty 50 Inside Bar on the weekly chart. This week, the market closed with a weak bearish candle, featuring a long lower tail and a small body. Currently, the market is forming an inside bar pattern. A major pattern on the weekly chart is the tight bull channel, and the market is also approaching its all-time high. On the daily chart, Nifty 50 is showing trading range price action and has formed a triangle pattern this week. The market continues to trade within a bull channel and is currently near the middle of the channel.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- Traders who entered on the high-1 pattern and are still holding their long positions should continue to hold until the market gives a strong bear close, or they can tightly trail their stop-loss as the market moves up.
- Traders who are not holding any position can place a buy stop order at the high of the inside bar pattern or enter a long position once the market gives a strong bull close above the inside bar pattern.
- The market is trading inside a strong tight bull channel, so traders should avoid entering short positions.
- Deeper into the price action
- As the market approaches the all-time high levels, this will act like a magnet, so traders might find many scalping opportunities as the market gets closer to the all-time high.
- Patterns
- If bulls are able to get a successful bull breakout of the tight bull channel, there is a high chance the market will reach a measured move based on the height of the pattern.
The Daily Nifty 50 chart
- General Discussion
- Traders who have entered a long position near the bottom of the bull channel can continue to hold, as the chances of a breakout in either direction are currently around 50-50.
- Traders who are not in any position should wait until the market gives a clear breakout.
- Deeper into price action
- The market is forming breakout mode patterns and is showing increasing trading range price action. This increases the chances of entering a trading range.
- The market is also nearing the big round number 25,000. Around such key levels, the market typically forms small trading ranges. Therefore, traders should adjust their strategy — instead of holding positions for swings, they should aim for quick exits.
- Patterns
- The market is approaching the big round number 25,000, which has led to an increase in trading range price action.
- If the bulls manage a strong breakout with a follow-through bar, traders can expect the market to move higher based on the measured move target.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
