Pre-Market Analysis: Banknifty Future – 12th Oct 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 Monday, prices opened inside previous day’s range near POC and buyers took the prices above PDH at the start. After some consolidation, prices moved further up forming a NVD up day with value area clearly moving up in Banknifty. There was some selling towards the end and we need to see if those sellers can follow through downside today, but for now, the prices are in control of buyers on higher timeframe.

What can be expected now:

Today, we need to see if sellers can take advantage of the buyer’s exhaustion or sellers are also weak and every dip gets bought. In case there is no good trade facilitation from either side, its better to stay out of market and wait or trade with reduced position size.

PDH and PDL are important levels from previous day’s range. Acceptance above PDH is bullish and in case of acceptance below PDL, prices can test poor low.

Trade plan for today:

Prices are expected to open inside previous day range and there is no calrity at open auction, so i will wait for IB range and then decide whether I should be taking any trade or just stay out and watch the markets. We can expect a good directional move only in case of acceptance beyond previous day’s range.

Some cautions:

  1. No long trades if prices trade below PDL.
  2. No Short trades if prices trade above PDH.
  3. Value are is moving up but trade facilitation is poor, so be careful of your directional trades.


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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