Sunday, 18 June 2017

Nifty Future Next Week

As you might be aware, Nifty is currently in a very low volatility phase and hence moving less intraday.  Once we are aware of this information, what we need to do most is, adjust to this new information that the market is giving us and trade it rather than getting frustrated and doubting our trading system.  Since the markets are in compression mode, we need to satisfy ourselves with 10 to 15 to 20 points of profit in a trade because most trading opportunities will not be able to offer more than that most of the time.

Markets need a trigger to move and unless it is able to find that trigger, it will continue to refuse to move significantly.

Now with the above vital information about the markets, let's assess how it can possibly move next week.

First let's assess what the current picture is so that based on that current picture, we can build some expectations.


As you can see in the above chart, I have marked all the valid ranges that were visible in the chart.  It is very much apparent from formation of these ranges that markets are going up.  First 3 ranges formed one above another, then a pullback in the form of A, then it resumed its uptrend and formed 4, 5 and 6 ranges.  After that, currently it is in some sort of correction or pullback and has formed range A and B, one below another in the form of envelope.

So in nutshell, currently a pullback or correction is going on in an uptrend.  Once this correction or pullback is over, we can expect the trend to resume and prices to start going up once again.

Now having got the answer about what the markets are doing currently, lets assess where this current correction can stop.


In the above chart, I have drawn support and resistance levels.  9580-9540 area is expected to work as support based on prior price action.  If it proves to act as a support, then prices can bounce from there and go towards 9700.  If this area does not lend support, then prices can likely come to 9350 level.

With this information, now it can become much easy to trade next week along with our DP's, intraday range formations and reading of price action.

You can learn too from me how to draw the correct ranges, how to do proper assessment of what is going on in the markets and how to build expectations without any bias, provided you are really willing to learn.

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