Pre-Market Analysis: Nifty Future – 19th Oct 2020

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Observation from previous day:

On Friday after a big fall on Thursday, Nifty opened inside previous day’s range near the lower end and sellers tried to test below PDL but failed. After that, price moved sideways for most part of the day forming a non-trend and inside day which was expected (see previous day’s post- Pre-Market Analysis: Nifty Future – 16th Oct 2020). Nothing much has changed and trend day VWAP aroung 11825 is still important level to watch out for and we need to see whether prices get accepted above this level or get rejected.

What can be expected now:

After a big move down on Thursday, nifty has consolidated in the lower end of the range. This can mean two things – Smart money have covered their positions or they might have redistributed again which will be clear only once we get a follow through in the corresponding direction. Also, one more sideways move inside Thursday’s range cannot be ruled out.

Trade plan for today:

I do not have any clarity on nifty and I will prefer to stay out and watch price development today. Nifty is expected to open above PDH due to positive Global markets and we need to see what happens today and do we get a good trade facilitation to upside or another Bulls exhaustion.

Some cautions:

  1. Nifty is not very clear on direction, so better to wait and watch.
  2. I will not be taking any trades today in nifty.

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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