Market Profile Analysis of Nifty Fut 4Dec'23

Previous session, NF had short covering P profile with a wide POC which buyers needed to sustain for next leg up. Buyers got a solid 230 points gap up and then drove up further, which extended above IBH and did trending auction till close.

Multi distribution trend up day with Gap up, buying tail and 5th day of one time frame up. Buyers dominance continues. No signs of mean reversion yet, but price has moved higher and dPOC remained lower at 20655.

Next session to continue trending move higher buyers need to hold 20790 zone which is upper distribution HVN and scale above PDH 20828 to develop a higher value. Failing to do above and moving below 20790 odds for the test of today’s extension handle 20758, then it could test VWAP zone at 20715, which should offer a bounce else back to trend day POC 20655.

Swing wise this move still has some leg to probe 20910 / 20990 zone, then could offer mean reversion. Usually when trend up day VAL is probed very next session means trending auction turning to balance on higher time frame, thus swing long negation now moves to 20615 which is trend up day low and VAL.

? Bullish hypos for next session

1. Holding 20790 + above 20830 → 20865 / 20915 / 20990
2. Fail to sustain below 20710 + above 20765 → 20790 / 20835 / 20865–890

? Bearish hypos for next session?

1. Fail to sustain above 20830 + below 20790 → 20740 / 20715
2. Sustaining below 20740 is weak → 20710 / 20680–655 / 20600–590