Pre-Market Analysis: Nifty Future – 07th Feb 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 Friday, price opened just above previous day’s low inside range and initiative sellers tested PDL at open but there was a good responsive buying which supported the prices at PDL and buyers took the prices to test POC. Aby after IB range formation , there was no follow through by buyers either and prices moved sideways for rest of the day inside IB range. There was a clear lack of strength from sellers, but buyers were also not strong to move price up and value area shifted down which shows the control is still with sellers. The day was a non-trend day which tells us no definite clarity and therefore we need to see whether sellers are able to push down the prices further today.

What can be expected now:

 Prices are consolidating in Nifty. we need to see if bears can follow through on downside above PDL or not. On Friday there was poor trade facilitation from both bulls and bears, So sellers follow through downside below PDL is good for short trade but failure to follow through below PDL  will not be good for sellers. In case, prices sustain above PDL, the struggle will continue and might result in sideways to up move.

PDH (17632), POC (17555) and PDL (17475) are the levels to look out for from previous day’s range. Acceptance above PDH we can test poor high 17809. Acceptance below PDL we can test swing low17230,

Trade plan for today:

Prices are expected to open near previous day’s low possibly with a gap down and and we need to see if sellers are able to push prices down and keep prices below PDL at open or not. There is not much clarity at open but in case prices are accepted below PDL, we can look for a short trade. In case price is not able to break below PDL, we can look for a long trade but with caution as market can again move sideways like friday if buyers and sellers both continue to struggle. We can also wait for IB range and IB placement can give clarity for later.

Some cautions:

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


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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