Pre-Market Analysis: Nifty Future – 23rd July 2020

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Observation from previous day:

On Wednesday, Nifty did an interesting thing, It opened near PDH (previous day high) and made a freak low of 10805 (400 points dip) and quickly came back near PDH. With this freak move, it repaired all the poor structures (poor lows) it left behind. but interesting thing to note is that, bulls were not able to take prices above PDH. So, until nifty moves above PDH today, we have no clarity in Nifty. The fight between buyers and sellers is expected to continue and make Nifty move sideways, so no trade is the best option today.

What can be expected today:

We can expect Nifty to open inside value area and can expect the test of Value area low (11040 levels) but considering today is expiry, i am expecting Nifty to move sideways unless it takes out PDH. Only in that case, Nifty is expected to move higher but will face selling pressure too,

Trade plan for today:

No trade plans in Nifty. Its better to sit out and wait for more clarity.

Some cautions:

  1. Today is expiry, so a sideways move is in best interest of option sellers.
  2. Until we take out PDH, the move can be sideways or bearish but down move is also risky as we are up-trending on higher timeframe.

Disclaimer:

Please note that this is a personal view for learning , observational and education purpose and is not a trading recommendation. Trading futures carry a risk, so you should consult a financial expert before taking any risk. Also, Nifty in above statements Indicate Nifty future for current month and not Nifty index.

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