Learn how to scalp Nifty 50 intraday using yesterday's POC, Value Area (VAH/VAL), and Imbalance (IB) levels – even with free charting tools.
Institutional traders use Auction Market Theory (AMT) to identify high-probability zones. By marking yesterday's key levels, you can predict today's support/resistance and scalp with precision.
Step 1: Key Levels to Mark Before Market Opens
- POC (Point of Control): Price with highest volume (magnet level).
- VAH/VAL (Value Area High/Low): Boundaries where 70% of trading happened.
- Tail Box: Long wicks showing rejection (support/resistance).
- Imbalance (IB): Gaps where price may revisit.
Step 2: Best Chart & Time Frame for Scalping
1. Chart Type: Nifty Futures (Not Spot Index)
- Futures have tighter spreads and real volume data.
- Spot index lacks volume visibility and has delayed ticks.
| Time Frame | Purpose | Hold Time |
|---|---|---|
| 1-Minute / 2-Minute | Primary scalping entries | 2-5 minutes |
| 5-Minute / 15-Minute | Confirm trend alignment | N/A |
Step 3: Scalping Trade Rules
A) Opening Range Strategy (9:15–10:30 AM IST)
- Above VAH: Look for pullback to VAH (now support) → Buy calls.
- Below VAL: Look for rally to VAL (now resistance) → Buy puts.
- Inside Value: Fade extremes (buy VAL, sell VAH).
B) POC Reversal Trade
- Price retests POC + bullish candle → Buy CE.
- Price rejects POC + bearish candle → Buy PE.
- Stop-loss: 10-15 points beyond POC.
Step 4: Risk Management for Scalping
| Parameter | Rule |
|---|---|
| Stop-Loss | 10-15 points (Nifty Futures) or 1.5x option premium |
| Target | 20-30 points (1:2 risk-reward) |
| Max Trades/Day | 3-5 high-conviction setups |
Pro Tip: Avoid scalping during lunch hours (12:30–1:30 PM IST) due to low volatility.
Free Tools to Implement This Strategy
- TradingView: Manually mark levels with horizontal lines.
- Zerodha Pi/Upstox Pro: Use depth-of-market (DOM) for execution.
- Option Chain: Track OI changes at VAH/VAL strikes.
Example Trade Setup
Yesterday’s Levels: VAH = 25,200 | VAL = 25,120 | POC = 25,100
Today’s Action:
- Price opens at 25,150 (inside value).
- Pulls back to VAL (25,120) with bullish candle.
- Buy 25,100 CE (strike near POC).
- SL = 25,100 | Target = 25,200 (VAH).
Conclusion
By combining yesterday’s POC, VAH/VAL, and IB with 1-minute/2-minute charts, you can scalp Nifty 50 like a pro. Focus on high-probability setups during the first 2 hours and stick to strict risk management.
Now it’s your turn: Mark these levels today and share your results in the comments!
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