Nifty Futures – Market Profile Analysis – 02nd April 2018

Nifty Futures on the Daily charts hovering still below the 200 Moving average level 10194. Currently SGX Nifty is pointing towards a possible open above 10200 levels. Though volatility in Indian Markets are muted relative to Global markets still daily ATR is holding above 124 level that entertains short term and Intraday players. It is not a dull boring markets like the year 2017 anymore.

Last week we got a Inside bar formation on the weekly timeframe. Previous week high at 10210 and previous week low stands at 9976 levels.

Nifty Futures Daily Charts

Top Down Analysis

1)Monthly/Weekly/Daily Charts – Trending Up/Down/Balancing

Monthly – Trending Down
Weekly – Trending Down to Sideways
Daily – Balancing (Sideways)

2)Strikewise PCR

10000PE and 10100PE are written – Intelligence over there it could act like a expiry support for this series on EOD basis.

3)Partipation OI

No Major bearishness from FIIs open positions or any other market participants, even though markets are falling we are dealing with temporary correction not a major bear market correction though.

4)Any events lined for this week

4th April – RBI policy announcements

Nifty Futures Market Profile Charts

From the Market Profile charts structurally the inventory went short to too short on last week closing and that could possibly result in short covering move.

Last 4 trading sessions in April series, Initial balance is getting broken on both the sides that makes trading not easier for any kind of traders.

Prominent POC at 10214 and failed auction at 10247 are the key reference level to watch in todays session for clearance. Indicator sentiment holds positive though market profile confidence turns negative. Overall on Mondays session short covering confidence has to be measured right from the open. When buyers confidence persist trading against the confidence might not be a wise choice!