Pre-Market Analysis: Nifty Future – 18th 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 Thursday, Price opened above previous day’s high with gap up and sellers were not able to close the gap up, After some sideways consolidation, prices moved up in Nifty. Although there was no One time framing by Bulls and there was volatility, oprices ended up at the top of day’s range forming a new all time high and ending as NVD up day with a buying gap and value area clearly accepting higher. So, Higher timeframe bulls are clearly in control in Nifty and Prices are in Strong uptrend.

What can be expected now:

With bulls clearly in control, we can expect the prices to move further on upside today but in case of Bulls exhaustion, there can be small inventory adjustment breaks (short corrections). The clue to watch today would be if prices are getting accepted or rejected above PDH. Above PDH is bullish and below PDH is sideways and we can test PDL and close the buying gap in case sellers dominate today’s price action.

PDH and PDL are levels to look out for price action today. Acceptance above PDH can take the price further up top new highs and acceptance below PDL can close the Buying Gap.

Trade plan for today:

Price are expected to open above PDH with a gap and we need to see if there is any good follow through at open or not. Otherwise, we need to wait for sellers exhastion and then look for a long trade if prices continue accepting above PDH. In case prices trade below PDH, we can wait for IB range completion and then look for again a long trade later in case of FB of IB low or PDL levels. No short trades till we trade above PDL (buying GAP) and no long trades if we trade below PDL.

Some cautions:

1.No long trades if price trades below PDL

2.No short trade if price trades above PDL

3. Banknifty and Nifty has shown a good breakout even on Daily charts. So, avoid shorting any of them for today.


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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