NIFTY Direction Expectations For Next Few Weeks

From 07 Jun 2024 to 19 Jul 2024 on daily candle, NIFTY price continuously remained above the cloud plotted by Option Scalper (see image above) which means constant flow of money in the market. Since last 03 sessions, price has entered inside the cloud area. Some factors to consider are:

1. Price remained inside the cloud even after much-waited budget which means optimism has fallen flat, as of now.

2. RBI governor is worried that lot of retail money is coming to the market, people are not depositing their money in the banks which is causing liquidity issues for the banks.

3. Short positions in Index Futures by FIIs have seen a jump of 7% yesterday and their long positions have reduced by 8%.

4. Many fund managers believe that valuations are too high and they are not taking fresh positions until a good correction comes in the market.

5. The retail traders fuelled rally is showing signs of exhaustion and we will wait for the price to go below the cloud which will confirm that money is being sucked out of the market.

Happy Trading.