Nifty futures have formed an outside day with an overlapping higher value.
Reference zones from today’s profile -
• Value Area = 22525(VAL) - 22545(POC) - 22615(VAH)
• 4 Day composite Value = 22510(VAL) - 225580(POC) - 22615(VAH)
NF opened with a minor gap down below the Previous Day’s Low (PDL) but quickly filled the gap within the initial balance itself. Subsequently, it went on to print a bullish outside day after a narrow range session previously. Despite being an outside day, the price action remains within the range of the March 28th (April Contract) profile, making it still an inside day auction. This results in a four-day (March 28 — April 03) composite profile.
It has been a rotational skewed up balance in the ATH zone. This composite balance requires some filling to create a Gaussian bell balance. As per the structure, there are high odds for an imbalance auction in the next two sessions. Inability to sustain beyond 22510 and 22630 is likely to result in choppy two-way imbalance moves next…filling composite value area, while a trending auction may occur if the price sustains beyond these zones.
Contextually, it is bullish with overlapping higher value, but buyers need to hold above 22510 at any cost; otherwise, they risk losing their advantage, potentially leading to a probe towards 22410–22380. Successfully holding above 22510 + a range extension above 22580, buyers might initiate a probe towards 22630 / ATH / 22680. Failing to sustain above 22630 will likely result in a retracement back into the composite value. There are high odds for a big intra-day range in the next two sessions.
