Pre-Market Analysis: Nifty 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, Nifty opened above previous day range with (Gap up) and buyers were able to follow through on upside after a gap up open, there was no chance to responsive sellers to push prices back inside previous day’s range. After IB formation also sellers were unable push to prices below IB but there was price consolidation after rejection from higher level. The day formed NVD on upside. The value area moved up and we are near all-time highs in nifty. The trade facilitation by buyers was okay. So, even though, there is a struggle between buyers and sellers at these levels, we can say that buyers are having the control. 

What can be expected now:

For now, we can expect prices to start moving higher if we see a good breakout and a good move by buyers above PDH but we need to watch trade facilitation by bulls. In case of any rejection or any poor trade facilitation by bulls above PDH, we need to be cautious on our long trades as today is expiry day.

PDH (18255), POC (18215) and PDL (18165) are the levels to look out for from previous day’s range. Below PDL, we can test virgin POC at 18085 and further go below it we can test weak low 17995.

Trade plan for today:

Nifty is expected to open near PDH and instead of immediately going long, I will wait to see if there is any supply coming from sellers. In case not, I will take a long trade but only if prices accept above PDH. I am not going to take any open auction trade inside previous day’s range and if prices keep accepting inside previous day’s range and fail to move above PDH, there will be sideways move so I will stay out of trade or may be plan for short trade later.

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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