Pre-Market Analysis: Nifty Future – 30th 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 previous day’s range near the lower end and initiative sellers pushed the prices below PDL to test virgin POC levels at the open itself but from that level, prices immediately bounced back starting the day with high volatility and responsive buyers then pushed the prices back into range. The open type was open rejection return (ORR) type which indicates failure of initiative selling but after a good responsive buying, prices failed to trade above singe prints (17230) mentioned in our pre-market analysis. So, therefore we cannot say that responsive buying took over the control. So, till we trade below this level which is now PDH, the selling pressure is likely to be there but since yesterday’s profile had a big buying tail, the sellers do not also have a clear advantage until we start accepting inside that buying tal region.

What can be expected now:

Even though the price failed to trade below PDL after breaking PDL in the first 5 min candle itself, the responsive buying could not take prices further up and  prices traded at bottom of the previous day’s range for rest of the day. We can assume the price is taking some small consolidation at this level which can continue for couple of days to if prices start accepting inside previous day’s range.  But. If price breaks and accepts below 17000 levels, we can expect further downside movement in coming days. Similarly, if prices accept above 17200 levels, we can expect upside movement. 

PDH (17208), POC (17130) and PDL (16850) are the levels to look out for from previous day’s range. Acceptance above PDH can test the virgin POC at 17500 level. Acceptance below PDL can test buying gap level of 16750.

Trade plan for today:

Prices are expected to open inside previous day’s range and there is no clarity at open auction.  We need to observe the price movement and prices acceptance with respect to previous day’s range. In case price fail to trade above PDH, I will look for a short trade  later but I will be cautious and will watch for trade facilitation with a view of sideways movement if sellers are not strong. In case, prices are accepted above PDH, there is no short trade and instead we will look for long trade opportunities in that case.   

Some cautions:

Disclaimer:

  1. No Short trades above PDH.
  2. No Long trades below PDH

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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