Pre-Market Analysis: Banknifty Future – 3rd Dec 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 previous day’s range and initiative buyers pushed prices up but ther failed to continue upwards and responsive buyers pushed the prrices back inside previous day’s range. Also, there was no strong responsive selling either and then prices moved sideways for est of the day with a slight upper bias resulting in NVD up day, closing at top and value area moving higher. On higher timeframe also, 36850 is crucial and would be a level to look out for price action today.

What can be expected now:

There is still not much clarity on Banknifty and as said, the weak high at 36850 level is crucial. We need to see if bulls can give a follow through upside after a strong closing and accept above 36850 levels. If this happens, we need to be cautiouus on shorts in higher timeframe also and bias changes to upside. IN case of clear acceptance above 36850, we can look for long trades but below this levels, longs are risky as we are still in downtrend on daily timeframe. In case of acceptance below PDL, we can say sellers could be back in control.

PDH (36690), POC (36490) and PDL (36280) are the levels to look out for from previous day’s range. Acceptance above PDH can test weak high at 36850 and acceptance above that can take prices to 37100 levels. Acceptance below PDL can be bearish for BNF and can test 35500 levels in days to come.

Trade plan for today:

 Prices are expected to open near PDH and I will wait for clear acceptance above 36850 levels to plan for a long trade. In case prices are not able to sustain above PDH, I will look for buyer’s exhaustion and then shorting opportunity later in the day after IB range formation.   In case prices break PDL, I will look for short trades. 

Some cautions:

  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, Banknifty in above statements Indicate Banknifty future for current month and not Banknifty index.

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