Market Overview: Nifty 50 Futures
Nifty 50 Micro Double Top on weekly chart. This week, the market formed a Micro Double Top, followed by a weak small bull doji bar. It is currently trading within a bullish channel, albeit a weak one. Price action in this channel looks like trading range behavior, indicating that traders treat it as such. Until there is a strong rally from this trading range, traders are advised to approach it cautiously. On the daily chart, the Nifty 50 is also showing significant trading range price action, characterized by the formation of inner and outer bars, along with several bars with tails at both ends.
Nifty 50 futures
The Weekly Nifty 50 Chart
- General discussion
- The market is currently showing a lot of trading range price action, trading near the reasonable trading range. Therefore, buyers should refrain from buying at this level.
- Bears can take a short position if they manage to establish a strong bear close, targeting the bottom of the trading range.
- Bulls who are already short should maintain their longs as the best the bears can achieve for now is a small pullback to the bottom of the trading range.
- Given the strength of the uptrend, bulls can safely hold their positions until a strong uptick in the trading range occurs.
- If the bulls manage to secure a strong breakout of the trading range with good tracking bars, traders who have not entered the bull market may consider entering.
- Deeper in Action Value
- Looking at the chart, notice the bars on the left that indicate a previous strong bull breakout with a gap.
- Note that the breakout gap remains open, signaling strength for the bulls. An open gap indicates a possible measurement gap, indicating an upward move based on the height of the previous bull legs.
- Patterns
- Nifty 50 is currently trading in a bull channel. This channel is narrow, which makes it difficult for the bears to win on the weekly chart.
- If the bears manage to create a bull channel rise, the rising price action of the trading range can lead to a trading range on the weekly chart.
The Daily Nifty 50 Chart
- General discussion
- The market on the daily chart is trading within a broad bullish channel, allowing both bulls and bears to profit by buying low and selling high.
- Currently, the market is trading near the top of the broad ascending channel, indicating caution for bulls in initiating new markets.
- If the bears manage to form a strong bearish bar, they should consider selling and targeting the lower trend line of the channel.
- Deeper into Price Action
- It is important to note the abundance of indoor and outdoor bars on the market, often accompanied by weak tracking.
- The increasing number of inside and outside bars usually signals the impending price action of the trading range.
- Despite the formation of strong inner and outer bars, it is notable that the market is failing to sustain momentum in the direction of the breakout, hinting at an impending trading range.
- Patterns
- The current market position in a broad ascending channel presents opportunities for both buyers and sellers to make profitable trades.
- The prevalence of inside and outside bars in the market indicates a trend towards trading range conditions.
Archive of market analysis reports
You can access all of the weekend reports on the Market Analysis page.
