Pre-Market Analysis: Nifty Future – 24th July 2020

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Observation from previous day:

On Thursday, Nifty opened near POC and moved up with one time framing to take out PDH and consolidated near PDH. Things to note is that there was no signs of Sellers until 10230 levels (which we have talked about many times in previous posts). Not since, this level is reached, there is no more clarity as there is a sellers zone above this. Also, trade facilitation by bulls is not good now a days, so we can expect prices to more or less remain in same zone.

What can be expected today:

We can expect prices to open inside range and see how they behave at PDH. I am expecting sellers to enter above PDH and these levels need to be carefully watched. Also, long trades at this time are very risky. But then, short trade is not advisable till we have clear signs of OTD(other timeframe sellers). For now, it looks like there is an accumulation going on at higher levels and a good swift breakout can only confirm that. But, if we keep on struggling in this zone for long, prices can come down swiftly in some days.

Trade plan for today:

I have no clarity and even tough nifty is moving up, there is a lot of struggle these days. Also, what I have noticed is that these days are not good for Intraday trades as movement is not smooth. So, I have decided not to trade until picture becomes clear. No Position is also a position. But If i would be trading today, then I will have a bullish view above PDH(previous day high), sideways to bullish view above 11170 levels and look for short trades only if prices are accepted below 11170 levels.

Some cautions:

  1. As, we are closer to sellers zone in nifty, we can expect a good fight and volatility, so trading will not be easy.
  2. Banknifty is clearly week thank nifty and until a good upmove in banknifty happens, it might remain sideways or weak.
  3. I am not updating my pre-market views on Banknifty as I am not trading for few days but the view in BNF (banknifty future) is same as nifty and I expect BNF also to move sideways and face selling pressure at higher levels. .


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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