Pre-Market Analysis: Banknifty Future – 27th 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 Tuesday, Banknifty opened inside previous day’s range and prices mostly moved sideways forming an inside day. The day formed was NVD down day but it was more of a consolidation after a big upmove, so we can say that bulls are still in control in banknifty for now. What we need to see is if bulls can break all time high in banknifty, otherwise sideways movement can be expected. Sellers have to push prices below HVNs formed in the previous day to get back in the game.

What can be expected now:

We can expect sideways movement in Banknifty until it accept above PDH or below PDL. Also in case of acceptance above PDH, prices can move slowly until they break all time high. There is no point looking for short trades in Banknifty today until we trade below the 40400 levels.

Trade plan for today:

Prices are expected to open outside previous day’s range and there is not much clarity at open. Only in case of clear acceptance above PDH, I will plan for a long trade but a long trade in nifty would be better if both indices are in sync. No long trades if prices trade below PDL but there can be a responsive long trade opportunity at false break of IB low or PDL. In case of no clarity, better to stay out as we are expecting sideways movement in banknifty.

Some cautions:

  1. No long trades below PDL.
  2. No short trades above 40400 levels.
  3. Watchout for Nifty, In case of Bullish move in nifty, we can expect Banknifty to be supported on every fall.


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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