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 Trading Outlook for Jan 2023 contract

52 sec read

Nifty futures – Jan 2023 contract started with a very welcoming start with Domestic Institutional investors busy inflating their year-end NAV values and Foreign Institutional Investors mostly in a holiday mood.

Market Profile Charts for Jan 2023 contract looking interesting as dominant short-term traders are trading this market on either side. Dominant Buyers defending the price action around 17950 levels and Dominant Sellers are around 18900 levels. This brings the odds of a possible two-way auction process and could keep Nifty between 17800 and 19000 levels for most of the Jan expiry.

Nifty Futures – Jan 2023 Contract

Though Expiry day ended with Failed Auction generally I prefer to ignore any failed auction that happened near Expiry or on the day of expiry.

On the upper side, there are two major levels that could offer temporary resistance zone around 18350 and 18650 levels. But eventually, those levels could get cleared after some time spent, resisting those levels.

December Expiry though ended with momentum buyers in a very short term caution is expected as the majority of the time trading in the direction of late momentum buyers could attract faster selling in the markets.

Huge 100+ point premium between Spot Price and Jan 2023 contrat

At the time of writing this article SGX Nifty is pointing to 18330 levels and pre-open of Nifty Spot 18246. Yet another series after December 2022 contract the premium in futures is maintaining above 100+ points. Which is weird thought or it could be a new normal to adjust to such huge spreads in the upcoming expiries

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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