Market Overview: Nifty 50 Futures
Nifty 50 Big Round Number 25000. This week, the market closed bullish with a small body and a short wick at the bottom. Bears attempted but failed to sustain consecutive strong bearish bars, indicating a prevailing bullish trend. Currently, the market shows signs of forming a micro wedge bottom, suggesting a potential trend continuation. On the daily chart, Nifty 50 is trading within a feasible trading range, currently positioned in its lower half. Traders can employ a strategy of buying at lower levels and selling at higher levels until the market convincingly breaks out above the significant 25,000 mark.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- The market remains in a strong bull trend as bears failed to initiate a convincing reversal. Therefore, selling should be avoided until there are consecutive strong bearish bars.
- Traders who haven’t yet entered the bull market or wish to add to their long positions can consider buying on high-1.
- Those already holding long positions should continue to hold until bears manage to form strong consecutive bearish bars.
- Deeper into the Price Action
- Observing recent price action, bears only managed to create a bearish bar followed by a gap down. However, this gap down lacked further downside follow-through, and bulls closed the gap with a bullish close.
- This illustrates the current weakness of the bears based on the ongoing price action. For selling opportunities, traders should await a strong second leg down in the market.
- Patterns
- The market is currently trading near the significant round number of 25,000. Typically, near such round numbers, trading range price action is common.
- Traders should anticipate trading range behavior on lower time frames in the upcoming week.
The Daily Nifty 50 chart
- General Discussion
- The market on the daily chart is currently trading within a defined trading range, suggesting that traders should employ a strategy of buying at lower levels and selling at higher levels.
- Given the significant height of this trading range, both bears and bulls have opportunities to profit within this range.
- Deeper into Price Action
- Over the last 10-20 days, the market has been forming relatively large bars that fail to sustain follow-through movements.
- This type of price action is a clear indication of an imminent trading range.
- Therefore, even before the boundaries of the trading range are clearly established, traders should adapt their trading approach.
- For instance, if your current trading strategy is effective in trending markets but struggles in trading ranges, recognizing these large bars with poor follow-through should prompt a shift to a buy-low, sell-high strategy.
- Patterns
- The predominant pattern observed on the chart is the trading range.
- If the market breaks out bearishly from this trading range, traders can anticipate a measured downward move based on the range’s height.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
HI
RISHI
I AM ALSO FROM INDIA , CAN YOU SHARE YOUR CONTACT NUMBER SO WE CAN DISCUSS MARKET?