Pre-Market Analysis: Nifty Future – 12th 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 Thursday, price opened inside the previous day’s range with open drive down type.  Initiative sellers took the control of price and broken the previous day’s low.  One time selling was happened till E period after that price moved sideways. Took consolidation at the bottom of the profile and normal variation down day type formed with “b” shape & selling tail.  Price closed below previous days low and value area has shifted down.  

What can be expected now:

Yesterday’s price consolidated below previous day’s range however after IB . there was no follow through down by sellers. Today,  we need to see if  responsive buyers can take advantage of sellers exhaustion and push the price above PDH or not.  I am bullish on acceptance above PDH but In case prices are not able to accept above PDH, we can expect sellers to take control again and try to push prices down and in that case I will have sideway to bearish view.

PDH (17985), POC (17868) and PDL (17807) are the levels to look out for from previous day’s range. Above PDH, we can test poor high at 18083 and further go above it. In case of acceptance below PDL, we can expect price to test poor low at 17770 and below that swing low at 17650.

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 look for a short trade. Short trades are risky till prices accept below PDL, so we need to be cautious on our trades. No short trades above PDH.   I am bullish above PDH and bearish below PDH.

Some cautions:

  1. No long trades below PDH.
  2. No short trades above PDH.
  3. Banknifty is at important support level, so we need to watch if it bounces back or breaks down from here and that will give us directional clue for Nifty 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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