Pre-Market analysis: Nifty Future – 1st July 2020

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Nifty is moving sideways from last 4 days after a big intraday down-move. This indicates poor trade facilitation by sellers, so this sideways move can be a kind of accumulation. Yesterday, we opened above PDH but failed to hold and were back in range which indicates lack of buyer’s intention for now. Also, we were not able to test PDL which shows lack of seller’s intention, there for it looks like Nifty wants to remain range bound. There was some buying in last hour after a big selling move and this buying needs follow through else we might go and test poor low below PDL. Trade ideas would be:
1. If Buyers get follow through and nifty breaks PDH in open itself, we can take a long trade at PDH and observe poor high carefully, acceptance above poor high can give a good upmove.
2. If market opens inside range, we can wait for test and rejection of poor low to go long, This rejection should be strong and with volume.
3. Acceptance below poor low will open up short trade.

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