Pre-Market Analysis: Banknifty Future – 1st Jan 2021

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Abbreviations I use in the post: PDH: Previous day’s high, PDL: Previous day’s low, IB: Initial Balance or First 1 hour range, NVD: Normal variation day (one of the market profile day types), OTD: open test drive, POC: Point of control

Observation from previous day:

On Thursday, Banknifty opened inside previous day’s range and moved mostly sideways throughout the day forming a non-trend inside day which was expected due to expiry. Now for a clear direction, we need to see acceptance or rejections of prices at extremes of this 500 point range (31550 – 31050). till we do not test or break this range, we might move sideways.

What can be expected now:

Today is first day of the year 20201 and holiday in west, so volumes will likely be low. In that case, there might be a sideways price action with no good directional movement, so it would be good idea to stay out. Only in case of clear acceptance or rejection at extremes of the range (31550-31050), we can plan a directional trade.

Trade plan for today:

Banknifty is expected to open near PDH and we need to see if prices are getting accepted or rejected above PDH. I will be bullish in case prices are accepted above PDH and bearish below PDH but I will not opt for open auction trade and will wait for prices to settle down before opting for a trade.

Some cautions:

  1. Today is first day of 2021 and holiday in the west, so volumes can be low.
  2. If Banknifty does not give a clear direction, it would mean only short timeframe players are involved and it would be better to stay out in that case.


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, Bank-nifty in above statements Indicate Bank-nifty future for current month and not Bank-nifty index

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