April 8, 2024
1 minute reading
The Nifty Future Market Profile chart shows a sideways broader rebalancing structure in the last 5 trading sessions. However, the April 4 structure is indeed important as it actually brings a sharp responsive market with a sharp overshoot in the daily structure, indicative of a support zone around 22420 levels. The Temporary Dominant Market also supports around 22510 levels which were created as of last Friday.
Balance Trading Rules Applicable to Nifty Apr Futures
1) If price breaks out of the 5 day balance and starts to accelerate, it could lead to more chances of trading positions
2) If price breaks and retraces to the retracement, then we need to look above the retracement and fail where the destination target is to the other side of the balance.
What can we understand from Top Down analysis?
1) Daily and weekly sentiment is positive. Which favors margin selling.
2) The weekly and monthly trend remains positive and the Daily trend is in sideways structure for the last 5 trading sessions.
3)India VIX remains muted at 11.34 despite election event looming
4) ATR levels decrease from the top. Potentially slow smoothing of intraday price action, with most of the price action occurring mainly in the form of gap widening or last hour price action. Not the best place for option buyers.
What to Anticipate Positively?
Nifty formed a very important support around 22420 levels. considering this level as important support. we can extend our price targets based on the market profile to higher all-time highs. Any price divergence from the 5-day rest and acceleration could bring price action to 22850 and 23100 levels in the short-term.
As we are at the start of earnings season more intraday volatility and difficult intraday price action are expected. Better to have a controlled thought process that could avoid hypermarkets. Only trade the pattern you see and avoid the urge to trade the markets frequently.
