As the Nifty May Future contract approaches its expiry date, traders and investors eagerly analyze various indicators to gain insights into potential market movements. In this article, we'll delve into the analysis of the Nifty May Future contract using two critical levels calculated by MRISKA DTS5: the Death Level and the Safe Level. These levels provide valuable information that can help traders make informed decisions and navigate the derivatives market with confidence.
The Death Level, calculated by MRISKA DTS5, plays a crucial role in determining potential breakdowns in the market. It takes into account market depth data of the next future contract on the day of expiry of the current contract. For the Nifty May Future contract, the Death Level has been calculated as 17922. When the Best Ask falls below the Death Level in any upcoming trading session's last tick, it signals a significant probability of a breakdown and potential expiry below the Death Level. Traders need to closely monitor this level to gauge potential bearish trends and adjust their strategies accordingly.
Alongside the Death Level, MRISKA DTS5 also calculates the Safe Level, which assists in identifying potential breakouts in the market. The Safe Level is determined using market depth data for the next future contract on the day of the expiry of the current contract. When the Best Bid surpasses the Safe Level in the last tick of a session, it indicates a high probability of a breakout and potential expiry above the Safe Level. Traders can leverage this level to identify bullish trends and capitalize on potential market upswings.
Based on the MRISKA DTS5 analysis for the Nifty May Future contract, several key observations have been made. The Death Level for the contract has been calculated as 17922, indicating a critical level to watch for potential breakdowns. Additionally, the Safe Level, calculated using market depth data of 27-04-2023, was found to be 18232.35. On the 04-05-2023 session, the Best Bid surpassed the Safe Level, further supporting a bullish outlook till the contract's expiry in May. This information can provide traders with valuable insights into potential market movements, allowing them to align their strategies accordingly.
The Death Level, calculated by MRISKA DTS5, plays a crucial role in determining potential breakdowns in the market. It takes into account market depth data of the next future contract on the day of expiry of the current contract. For the Nifty May Future contract, the Death Level has been calculated as 17922. When the Best Ask falls below the Death Level in any upcoming trading session's last tick, it signals a significant probability of a breakdown and potential expiry below the Death Level. Traders need to closely monitor this level to gauge potential bearish trends and adjust their strategies accordingly.
Alongside the Death Level, MRISKA DTS5 also calculates the Safe Level, which assists in identifying potential breakouts in the market. The Safe Level is determined using market depth data for the next future contract on the day of the expiry of the current contract. When the Best Bid surpasses the Safe Level in the last tick of a session, it indicates a high probability of a breakout and potential expiry above the Safe Level. Traders can leverage this level to identify bullish trends and capitalize on potential market upswings.
Based on the MRISKA DTS5 analysis for the Nifty May Future contract, several key observations have been made. The Death Level for the contract has been calculated as 17922, indicating a critical level to watch for potential breakdowns. Additionally, the Safe Level, calculated using market depth data of 27-04-2023, was found to be 18232.35. On the 04-05-2023 session, the Best Bid surpassed the Safe Level, further supporting a bullish outlook till the contract's expiry in May. This information can provide traders with valuable insights into potential market movements, allowing them to align their strategies accordingly.