Nifty Futures: What Next?

For a change, I decided to post about Nifty Futures. Before getting any further, take a look at the recent string of messages posted in Twitter recently.

@TraderIndian Here is #NF Daily. pic.twitter.com/cQsz9GUAWS

— B.Krishnakumar (@Techtrail) September 18, 2015

.@TraderIndian Here is the updated chart with few observations. Hope this helps ! pic.twitter.com/dUI3cIRhFO

— B.Krishnakumar (@Techtrail) September 21, 2015

  .@TraderIndian Updated chart. pic.twitter.com/bLA0QqOFAb — B.Krishnakumar (@Techtrail) September 22, 2015

And here is the updated hourly chart of Nifty Futures mentioned in the third tweet above. The idea behind this post is to highlight how price moves from one zone to another and how Andrews Pitchfork gave the perfect trade location for the short-trade. Take a look at the chart below. Those who have not figured out the reason behind the blue-ellipse in the chart above, it is nothing but price a landmine-zone that I talked about in the Monthly Nifty chart in an earlier post. The price has consumed demand on its way up which is a clear warning that price would collapse if it were to revisit it. And, that is what happened. Not surprising at all and this was clearly mentioned in the second tweet above. Have a look at the chart in that message and I mentioned clearly that price would fall sharply if it reverse from the upper parallel. It is not my intention to do a #AsToldBefore post but to emphasize that price and simple tools give you lots of information to trade. Nothing fancy. The immediate target for the Nifty Futures is the medianline at 7,620-7,630. This range is not too far off from the immediate demand zone at 7,560-7,630. Hence, it would not be outlandish to expect some respite at the 7,560-7,630 zone. A look at the daily chart indicates that the next significant support zone comes in at 7,230-7,260 zone. I would not be surprised if we eventually test this daily support zone. The swing high at 8,125 is the level to conquer as of now, to suggest the case for a meaningful recovery in the Nifty Futures. Disclosure: I have a long-term portfolio of stocks comprising of Nifty constituents. I also hold short positions in the Nifty Futures.