Nifty Futures – Market Profile Analysis

Inventory is getting short to too short again. Holding shorts could be risky here as the wednesday trading session showed a volatility decline despite a huge drop. Possible signs of short term trend reversal. Nifty is trading very close to the 200 moving average level. In such a situation when short covering happens one have to run for cover especially when inventory conditions are getting short to too short.

India VIX down by -3.91%. Pointing to Possible Short covering. Overnight carrying Shorts looks risky!

— Marketcalls (@marketcalls_) March 7, 2018

Nifty Futures Market Profile Charts

Market Profile – Key Reference Levels

1)Spike Base at 10355

2)Prominent POC at 10481, 10568, 10700

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

4)Mechanical stops Upper Side 10617 and 10638

5)Weekly Gap at 10724(upper side).

6)Double Distribution Balance 10466

7)Weekly Gap (Partially Filled) 10440

Trading Sentiment is down with short term inventory getting short to too short. Any acceptance above 10225 could bring a potential short covering towards the spike base 10355 and the weekly gap 10440 levels.

Related Readings and Observations

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