Pre-Market Analysis: Banknifty Future – 13th Jan 2022

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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 Wednesday, Bank nifty opened above PDH, (Gap up) and bulls kept the prices up above PDH and protected the buying Gap. The prices consolidated above PDH in sideways zone. The trade facilitation was poor by buyers but sellers were also absent and it was a non-trend day with value area clearly moving up.

What can be expected now:

After a good move up on higher levels, the last two days were non-trend days even though the value area moved up. So, we need to be cautious and see which direction prices move in coming days. There are higher chances of prices moving upside but today any rejection from PDH can result into sideways move , due to weekly expiry. This down move if happens will just be a correction and we might resume uptrend soon.

PDH (38955), POC (38850) and PDL (38720) are the levels to look out for from previous day’s range. and acceptance above PDH week high 39185 acceptance below PDL can test virgin POC 38500.and weak low 38200.

Trade plan for today:

I am bullish on Bank nifty if prices accept above PDH and have a sideways move if price accept inside previous day’s range. Bank nifty is expected to open above PDH and we need to wait and watch where prices are getting accepted before we take trades, In case of sideways movement or poor trade facilitation, I will probably stay out of directional trade unless I get a very good opportunity.

Some cautions:

  1. No long trades below PDH.
  2. No short trades above 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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