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 Tuesday, Nifty opened inside previous day’s range and there was struggle between buyers and sellers but sellers were not able to push prices to test PDL and after IB range formation, buyers took the prices up and Nifty continued upward movement thereafter one-time framing upside giving a big trend up day. Now, this rally was news driven and was unexpected, so i will be cautious and will wait for further confirmation on bulls. As of bow with this big up move, buyers seem to have control but they need to follow through which is very essential.
What can be expected now:
Today, we need to observe if higher timeframe buyers can move the price further up or not. The sellers seem to be weak as of now and therefore buyers need to take advantage of it. In case buyers failed to keep prices above PDH , there can be some struggle again between buyers and sellers which can result into sideways to down move which is not good for buyers.
PDH (17385), POC (17100) and PDL (16835) are the levels to look out for from previous day’s range. Acceptance above PDH we can test poor high 17650. Acceptance below PDL we can test virgin POC 16660,
Trade plan for today:
Market is expected to open near PDH and although prices are are bullish, we need to wait and see if prices are getting accepted above PDH or not to plan a long trade. And also, we will look for sellers’ rejection to plan a long trade but in case prices fail to trade above PDH, we will wait for IB range formation and plan a trade. in case of not much clarity, I will stay out of any trades today.
- No long trades below PDH.
- 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.