This is the earlier volume profile I had posted for NIFTY.
Lets see the nifty action today on 30min chart for last 10 days.
We gapped up and in one candle were at high volume node 1 which was around 4960. Hence we have stopped today just short of 4950 which is the next high volume node. Now the issue for tomorrow is how do we play - before than lets consider few facts
- Nifty today had a typical turn date surge ahead and did not show any weakness in terms of price
- Having retraced so much in day day, its possible that tomorrow will be a consolidation day where in we might not get large movements
- So those who were long it they already have not booked some profits should do so at tomorrows opening. Rest should do so at 4950 is it comes and then look for price action.
- From trend following perspective - Signal has been given in nifty to come out of any shorts that were in the system specially if they were puts since nifty has shown that the trend has changed ie. shorts would not be much profitable any more till further signal. But there has been no signal of taking longs positional on for weekly timeframe traders as well. Hence tomorrows action will be carefully watched.
- Strategy for Nifty tomorrow - get out of shorts at 10.15 am if the price is above 4950. We will then have no short positions in NIFTY. Moreover - if the day ends in positive then on a weekly stoc we might have a buy signal and thus after 2 pm if market looks to be above 4950 and should not have come back from 5050 then, a long can be taken. Otherwise take a long in morning at 10.15 am itself.



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