Pre-Market Analysis: Banknifty Future – 5th Apr 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, HVN (High volume node)

Observation from previous day:

On Thursday, Banknifty opened inside previous day’s range and sellers tried to push the prices down but after a rejection from IB low, buyers took control and kept moving the prices higher with strength and closed high above the PDH at the top forming neutral extreme day but almost like a trend day. The buyers strength was clearly visible in Banknifty and we need to see today if that buyers strength continues, that is buyers are able to puch prices above PDH in Banknifty or not. In case prices are pushed above PDH, we can expect and goo move to upside but in case of acceptance inside previous day’s range or in case of prices rejection above PDH, we can see a possible sideways move.

What can be expected now:

Today, we need to observe where prices are getting accepted in Banknifty. Acceptance above PDH would give us some up move. In case of prices not accepting above PDH, I will probably ignore any trade in Banknifty.

PDH , POC and PDL are the levels to look out for from previous day’s range. Acceptance below POC is not good for buyers.

Trade plan for today:

Banknifty is expected to open inside previous day’s range and I will for IB range formation and observe the price action. I will look for long trade in case of acceptance above PDH but no tarde if that does not happen.

Some cautions:

  1. Short trades are risky if prices trade above PDH.
  2. No long trade if prices trade below PDH.
  3. Also, watchout for strength/weakness in Nifty before planning a trade in Banknifty.


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, Banknifty in above statements Indicate Banknifty future for current month and not Banknifty index.

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