D forming

If trading has been dull for you or you stops have been mowed down in a sideways market, blame it on the Nifty D.

The Nifty D is the distribution pattern or the balancing nature of the market as it moves from Imbalance to balance.

Here is the chart which was posted yesterday :

Nifty Mp21 D Forming

And this is the updated one as of today :

Nifty Mp3 D Forming

Clearly the profile is balancing and acquiring a D shape as we look to leave this formerly poor traded zone.

There have been sellers selling near the highs and covering for a few points below and buyers buying the dip but not holding on for higher levels.

Meantime the 5300 CE/ PE are accumulating volumes and Open Interest as well as the 5200 PE and the 5400 CE.

That’s the actual strategy for this market- a theta burn on a delta neutral platform.