Observation from previous day:
On Thursday, Nifty opened inside previous day’s range but just above PDL (previous day’slow) and buyers tried to move Nifty up but were rejected and then sellers tried to move nifty down but again were unable to break PDL (previous day’s low). So, there is a still a confusion and no clarity in Nifty as it seems both buyers and sellers are struggling for now. Today, we need to see if Sellers are able to take nifty below PDL (previous day’s low ) or buyers again push prices up breaking PDH (previous day’s high). Until price remains within previous day’s range, I have no clarity on direction.
What can be expected now:
I will be bullish on Nifty if prices gets accepted above PDH (previous day’s high) and bearish on Nifty is prices get accepted below PDH (previous day’s high). Till price remains within previous day’s range, I will have a sideways view on Nifty.
Trade plan for today:
Nifty is expected to open within previous day’s range and there is no open auction clarity. I will take a trade only if Nifty breaks either PDH (previous day’s high) or PDL (previous day’s low) decisively and in that direction. In nifty remains in sideways range, I will look for a rejection from PDH (previous day’s high) or PDL (previous day’s low )to take mean reversal trade but only later in the day.
- Bank-nifty is in a range for many days, so breakout or breakdown of Bank-nifty will affect Nifty and might pull it up or down, so keep watch on bank-nifty.
- Still, there is a struggle going on between buyers and sellers in nifty and no one seems to have good conviction. So we can also opt to stay out.
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.