Pre-Market Analysis: Nifty Future – 27th Oct 2021

Posted by

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, prices opened inside previous day’s range and Initiative buyers pushed the prices above PDH with open drive (open high). But after IB range completion, Buyers failed to mark prices further up and responsive sellers pushed the prices back inside previous day’s range and tested IB low and POC. After a consolidation near POC, the sellers were not able to push prices further down and responsive buying pushed the prices back above above PDH. This second half responsive buying can be seen as short covering and we need to see if these buyers can further push the prices up or not. Prices close at day’s high forming Neutral extreme up day which is in favour of buyers.

What can be expected now:

We can expect the prices to move further on upside today in case prices are getting accepted above PDH. In case of acceptance within previous day’s range, we can expect sideways day but in case of any acceptance below PDL, we can expect more fall in nifty. Also, inside range POC is a level to look out for price action and acceptance above POC is bullish for short timeframes also.

PDH (18350) , POC (18200) and PDL (18108) are the levels to look out for from previous day’s range. Prices can test Poor high (18465) in case of acceptance above PDH and in case of acceptance below PDL, prices can test swing low at 17986 but this will not be good for bulls.

Trade plan for today:

Prices are expected to open inside 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, otherwise I will wait for IB range formation and then look at the IB placement with respect to POC to find a trade opportunity. I am bullish above POC and bearish below PDL.  NO Short trades above PDL.

Some cautions:

  1. No long trades below POC.
  2. No short trades above PDL.
  3. Nifty is now moving up and Banknifty is moving sideways after moving a good distance up. So lets see if Nifty catches up.

Disclaimer:

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.

Leave a Reply