WANT TO BE A SUCCESSFUL TRADER or INVESTOR? LEARN FROM EXPERTS | CALL: +919108911590 | Info@tradingcoach.co.in

Nifty Price action analysis – Traders focus on volatility and fundamentals

Price action in intraday time frame is extremely messed to get a big picture perspective. As per Technical analysis – Volatility is playing an important role in Nifty. Investors cut down their bets after macro economic report disappointed the expectations. Global Markets are influencing the domestic market sentiment. A recent development in Nifty and Bank nifty sheds some light. Current price value of Nifty is 7840.00.

Below is the 4h chart of Nifty with price action technical analysis.
4h chart of Nifty with price action technical analysis

1. Price action made higher highs in relation to market structure.

Nifty making higher highs may provide a visual appeal of markup phase. But a detailed analysis of price action changes the perspective of Market structure. When we see the chart closely it’s obvious to notice that market trend is asymmetric and constantly interrupted by sellers.

In Hourly chart the market structure becomes much clear.
Hourly chart the market structure becomes much clear

2. Multiple thrust failures at new highs.

Thrust failure pattern occurs when price action can’t above new highs but consolidating below the high. From the viewpoint of technical analysis, thrust failures are price action patterns caused by failure of buyers to sustain above highs. This pattern is modified version of Richard Wyckoff’s up thrust; we cover it in-depth on our trading course.

3. Trend line acting as a dynamic support level.

Trend line plays an important role in estimating the force of buying pressure. It’s obvious to note that trend line is acting as a dynamic support level, so price reaction after testing this specific trend line can offer a better estimate of market sentiment. Currently the trend line is anchoring in the zone of 7760 – 7750 which can act as potential support level.

Some important support – resistance key levels in Nifty
Some important support - resistance key levels in Nifty

4. Volatility decreasing and diverging from the market structure.

Price action is diverging from volatility it indicates less conviction and participation rate in movements. This can have significant impact on Market’s liquidity. Price action should positively correlate with volatility or the movements are just noisy fluctuations. In technical analysis increasing volatility is a justification for trading setups.

5. Traders should focus on Volatility, Price action and Fundamental inputs.

For better trading opportunities and trading setups we should watch how volatility behaves in response to price action. Also keep your eyes on important support and resistance levels in Nifty. Lower time frame price action will play a crucial role in determining market direction.


Trading Predator

About the Author:

Balaji is a Speculator, Investor and Trader (All in All!!!) and self published author. Trading in the Markets since decade, have seen more ups and downs along with institutional trader's lifestyle. He usually trades Nifty, Bank Nifty, Commodities, Futures cum Options around both Indian and global Markets. Balaji applies highly analytical and systematic Price Action strategies He blogs passionately about Trading strategies, Price Action Trading, Technical analysis, Macro events, Market setups, Financial and Economical topics. Apart from Trading and Blogging, Balaji also mentors aspiring Traders and Investors on becoming successful in highly competitive financial Markets.

3 Responses to Nifty Price action analysis – Traders focus on volatility and fundamentals

  1. Ram Nene says:

    Not sure if FII are controlling Nifty rise in coordinated fashion , 8000 call options build up is highest , it will be impossible for nifty to scale 8000, some how it looks odd bcas nifty is so close to it.


    i want to know more about price action statagies . I am a compulsive nifty trader. i have lost money in this ttrsde. want to perfect art of investing in nifty.


    i like your way of trading want to know more about price action trading

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>