Pre-Market Analysis: Nifty Future – 9th Nov 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, price opened inside the previous day’s range after a long weekend and buyers tried to push prices above PDH in start but failed. Responsive sellers entered near PDH and pushed the prices to POC but there was no further follow through by sellers and buyers defended the price at POC level. After IB range formation, prices failed to break IB low and a strong responsive buying buying pushed the prices above IB high and PDH and prices closed at day’s high with a narrow trend day profile.

What can be expected now:

With this upmove of yesterday ,it seems like bears are losing control over the prices but what we need to observe today is whether bulls are able to push prices further up or not. In case of acceptance above PDH, we can expect an upmove but in case prices fail to break PDH, there can be a sideways move. But I am cautious on sellers and will not be looking for any short trades until prices trades below PDL or I get a very good conviction.

PDH , POC and PDL are the levels to look out for from previous day’s range.   If prices trades above PDH,  we can expect a good upmove and may be test of virgin POC at 18325 level. In case prices accept below PDL, we can expect prices to test swing low 17650.

Trade plan for today:

Prices are expected to open near PDH and we can plan for a trade in case of OTD up at open. In case prices fail to break and sustain above PDH, I will wait for sometime for sellers to get exhausted and then can plan a long trade above PDH. In case prices sustain inside previous day’s range, I will wait for IB range completion and then look for FB of IB low or break of IB high for a long trade but no long trades if prices trade below IB low.

Some cautions:

  1. No long trades below PDH or below IB low.
  2. No short trades above PDH or above IB low.
  3. Nifty is stronger than Banknifty and Banknifty need to show strength for further upmove in nifty, so keep eye on Banknifty also.

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.

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