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Market Overview: Nifty 50 Futures: Trading Update: 4.10.24 FRI

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9 views4 pages

Market Overview: Nifty 50 Futures: Trading Update: 4.10.24 FRI

Uploaded by

jaydipkathiriya48
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Nifty 50 MTF Measured Move Target

Trading Update: 4.10.24 FRI

Market Overview: Nifty 50 Futures

● NIFTY 50 Measured Move Target of the Bull Breakout of the Wedge Top (Wedge Top

Overshoot).

● The market had a bull bar having tails on either side in September 2024.

● It continues to trade in a strong bull trend with no significant signs of reversal so far,

meaning traders should avoid shorting the market or exiting their long positions.

● The market has reached the measured move target of the bull breakout of the wedge

top, so some bulls may take profits, possibly leading to a small pullback.

● On the weekly chart, Nifty 50 has formed a strong bearish bar this week, covering the

previous three bullish bars. Bears will need a follow-through bearish bar for a

potential reversal.

Nifty 50 futures

The Monthly Nifty 50 chart


● The market is currently trading in a strong bull trend, with no clear signs of a reversal.

Therefore, traders should avoid shorting the market until there are strong consecutive

bear bars.

● Since the market remains bullish, traders who have not yet entered this trend can

place a buy limit order at the low of a bull bar.

● Traders who are already in a long position should continue holding, as there have

been no signs of reversal so far.

● Consider this idea: “You should exit your long positions only when you’re ready to

take a short position.” In other words, exit your long positions only when the market

shows a clear attempt at a strong reversal.

● Over the past several months, bears have failed to form a significant bear bar (there

has been only one weak bear bar in the last year). This indicates that the market is in

an extremely strong bull trend.

● For bears to reverse this trend, they must form strong consecutive bear bars. A

single weak bear bar or a weak pullback will not be enough to reverse this powerful

bull trend.

● The market has reached the measured move target of the wedge overshoot pattern.

Profit booking around this level might cause a bear close


The Weekly Nifty 50 chart

● The market is currently trading in a bull channel after forming a strong bear surprise

bar. This week, the market closed with a very strong bear bar.

● For the bear trend to reverse the bull trend, bears need to follow through with more

strong bars. Traders holding long positions should wait for this follow-through bar. If

the next bar is weak, they can continue to hold their longs, but if the bears produce

another strong bear bar, it may be time to exit.

● Traders who have not yet entered this bull trend can buy on a high-1 setup if the next

bar turns out to be a bull bar.

● In the past several weeks, the market has been unable to produce strong

consecutive bear bars. If the bears manage to form another bear bar, the chances of

entering a trading range will increase.

● Given that the bull trend is still very strong, the probability of this surprise bar causing

a reversal without a second leg up is low. Traders can expect a second leg up before

a potential reversal occurs.


● The market has formed a large, strong bear surprise breakout bar. If the bears fail to

follow through with another strong bar and the market reverses, a Measured Move up

to 27673 based on the height of the surprise bear breakout bar can be expected.

● MKT has tested the HIGH of the JUL 2024 and if the MKT will probably reverse

upside from here then it will probably have the Measured Move up to 27673.

● The MKT trades at the bottom of the bull channel and will probably take the support

of the bull channel.

● The MKT already retraced 50% of the rally from the Low of bear bar @23912.50 to

ATH level 26402.90 which will be working as probable support for the MKT.

Source:

Brooks Trading Course Website

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