Pre-Market Analysis: Nifty Future – 28th Oct 2020

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Observation from previous day:

On Tuesday, Nifty opened inside previous day’s range and sellers tried to take prices below PDL but failed. Responsive buyers took the prices up and continued above IB high (Initial balance – first 1 hour) forming a NVD (Normal variation day) on upside. The entire move was inside previous day’s range and was an inside day and one thing that is clear is that there was no follow through by sellers to downside, so the fall on Monday looks like Inventory adjustment break by higher timeframe buyers. Now , we need to see for how long prices will move sideways before giving a breakout of upside. Having said this, if prices go back testing PDL (previous day’s low), it is not a good sign for buyers at least in short term.

What can be expected now:

I have a sideways to bullish view in Nifty and I will be looking for trades on the long side only if prices are accepted above PDH (previous day’s high). I am expecting prices to move on the upside today or in next few days but This is Market and anything can happen, so we always need to be on guard and think on possibilities and not on surety.

Trade plan for today:

Nifty is expected to open inside previous day’s range and I am planning to take a long trade in case prices break PDH (previous day’s high). In case , Nifty opens above PDH, i will look for a rejection at PDH to take a long trade. I will not be looking for a trade if prices are accepted inside previous day’s range and it could move sideways for entire day but I will watch price action in that case to get an idea of what Market is trying to do.

Some cautions:

  1. No short trade if prices are accepted above PDH (previous day’s high).
  2. Nifty is moving in sideways zone and no one know how long it will keep moving sideways. Patience is needed.


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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