Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Nifty Futures – Market Profile Analysis – 7th Mar 2018

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Nifty futures on Tuesday session extended its losses in the second half of trading. Though the market opened gap up, soon the early morning buyers confidence faded within the first hour of trading. First half of the trading was more of a choppy trading session followed by a late sell off with spike formation.

Nifty Daily Charts

Price went testing the strong ORR levels 10343 for the 7th time succeeded in accepting below that with a spike setup. Higher timeframe players are expected to liquidate their positions as market is nearing the more visual reference levels like 200MA, Previous swing high reference. Breaking those reference more and more higher timeframe players (long term and intermediate players will mostly exiting those zones with could trigger huge liquidity.)

Nifty Futures Market Profile Charts

Though Market opened with greater confidence and went higher in the first 30min of trading. Later, the opening confidence change to OAOR(Open Auction Outside the Range) type as the price rolled back to the center – indicates lack of buyers confidence. Price started balancing in the first half of trading session around the day open followed by spike in the last 90 minutes of trading.

Price punched through the strong ORR reference. Though multiple times responsive buyers responded at those reference levels in the previous occasions, this time price action was a swift sail through the levels like the path of least resistance. Also price is completely out of the short term balance. For any trend reversal to continue price has to get back into the balance.

Market Profile – Key Reference Levels

1)Spike Base at 10355

2)Prominent POC at 10481, 10568, 10700

3)Strong ORR at 10343

4)Previous Week Low at 10449 and 2 Week Low at 10315

5)Mechanical stops Upper Side 10617 and 10638

8)Weekly Gap at 10724(upper side).

9)Double Distribution Balance 10466

Short term Inventory on Tuesday session ended again short to too short it is place more and more people chase price and momentum. Bottom is soon in terms of time however some serious trigger could be a possibility from the daily timeframe as more higher timeframe participants are expected to liquidate when the visual reference levels are likely to break.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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