Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Nifty Futures – Deep Intraday Liquidation – Market Profile Outlook

1 min read

Nifty Futures closed negative on the very first trading day of the year 2024. The day turned out to be an outside bar with steep intraday inventory adjustment where the last 45 minutes of Nifty futures witnessed 197 points of intraday liquidation.

However, market profile charts provide important support zones around P shape Profile (21600) and Strong Prominent POC (21650) levels. The spike base from 27th Dec acts as an immediate support zone around 21800 levels. Though in the very short term markets are expected to trade towards 21750 levels prices manage to hold above 21750 levels bringing a potential price action back towards all time high again.

Nifty Futures 5min Charts

Nifty Daily Sentiment

Nifty Turbo RSI daily sentiment has held positive for the last 5 trading sessions indicating downside odds are very limited for this series and buy-on-dips mode continues as long as the P-shape balance around 20600 levels holds. Total Sentiment could turn negative only if there is a strong downside price action below 20600 and the price accepts below the p-shape balance.

10 Day ATR maintains around 202 levels which indicates reasonable intraday intraday trading opportunity is still around the corner with volatile price action. India VIX marginally edged higher and closed at 14.68 on Monday’s trading session.

India VIX

On February 1, the Union Budget 2024 is set to be unveiled by Our Finance Minister Nirmala Sitharaman, marking NDA government’s final budget presentation before the upcoming general elections. Before the budget announcement, the VIX shot up and is currently around 14+ levels and is expected to peak around the Budget announcement.

Nonetheless, the broader markets do not display significant signs of bearish trends. Given that the month coincides with the earnings season, it’s reasonable to expect numerous stock-specific activities. Consequently, there might be a potential for uncorrelated price movements between Nifty and Bank Nifty during this period.

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, 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. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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