Pre-Market Analysis: Nifty 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 the prices above and broke PDH in first 30 minutes itself and then responsive sellers were not able to push prices back inside range.   The buyer’s continued moving prices up throughout the day with minor pullbacks.   The day ended as NVD up day with value shifting up and close was at the top  on strong note by bulls.  This strength of bulls can be a reversal indication of trend but for that we need a follow through upside today otherwise this day could just be a strong pullback in downtrend.

What can be expected now:

We need to see if initiative buyers that entered on higher prices yesterday can push prices further up above PDH  or not.  We will have bullish view on any acceptance above PDH but in case they are not able to push prices above PDH, the struggle will continue  which is not good for bulls as we are still in downtrend on daily timeframe. 

PDH (17444), POC (17310) and PDL (17170) are the levels to look out for from previous day’s range. For Intraday, price action at POC is very important.  Acceptance above PDH can test virgin POC at 17510 and poor high at 17600 levels and acceptance below PDL can test weak low at 17000 level. 

Trade plan for today:

Prices are expected to open near PDH and we need to wait for a clear acceptance above PDH for a long trade,  if prices struggle to break PDH or is not able to break PDH, i will stay out and wait for IB completion.  I am bullish above POC but in case prices accept below POC, i will look only for short trades.   

Some cautions:

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

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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