Nifty Futures Pre Market Analysis - 7/7/2011

Nifty is trading in a Bracket, it is the balancing time after an up move. The buying tail on Wednesday is a key reference point. Getting short in the hole caused the afternoon rally. A breakout/failure from VA offers opportunity. If opens out of balance, then the bracket extremes are key reference points. Strategy is to buy near bracket low and sell around bracket high. If opens above VAH and holds VA, then it may rise up to bracket high.

Nifty Futures Pre Market Analysis for 5/7/2011

Well, the nifty futures remains one time faming up. However an excess formation may be underway. Inside day and Balanced Day. Volume is lower. A bracket formation is underway.

When u see a balanced profile, usually the asymmetric trade opportunity is breakout from balance. There is good probability that we had a short term excess on 1/7, but it is not a strong one.

1. Single prints, coincides more or less with the single prints from previous day. Upward breakout should be       traded with extreme caution. Observe volume for clues of breakout failure.
2. Poor Low from previous day not repaired. We carry forward this information.

There is an anomaly on the shorter time frame profile chart. This area coincides with the single prints discussed in 1. So this level may be a strong resistance point and day high may be formed around this level.

If market opens higher and volume is not coming, then nifty will be attracted back to the prominent POC 5665. Same is true for a lower opening also.

Trade Plan 4-7-2011

The nifty continue to onetime frame up. However volume was lower on Friday and the gap up open was rejected back into Friday's range immediately. Nifty seems as if it needs to be balanced.

1 & 2 - Double Distribution. The lower distribution is overlapping with the Thursdays VA. This is a balance zone and breakout from this balance is next trading opportunity.

3. Single Prints and intra-day pull back high. This is a key reference point for Monday.

4. Selling tail, another key reference point for Monday

There is a poor low on Friday. A repair and pullback into Friday's range should be kept in mind while taking a break down trade.  Also we have a previous excess high at 5608 which is significant now.