It's very unlike an RBI day to form an "inside bar" but we saw it in yesterday's trade in the Nifty, a move which displaced a lot of the single prints seen the day before.
The result was that we saw some long closure in the Nifty and some new short positions in the BankNifty.
The BankNifty also had a spike in the closing hour and spike rules apply at the open on Monday. The rules are mentioned in the glossary section : http://www.vtrender.com/content/spike
The charts above as helpful as they are (and Market profile helps tilt the balance to show us what happens inside the candle) are actually past data. We can derive only reference points from such data.
The actual market is the present and the buying and selling of the present sets up trade opportunities.
A good trader should find a way to mould the past and the present to take a call on the future.That can be only possible when you see the actual buying and selling happening at the known reference points which you may have put in your pre- market studies.
In the trading room, we have a mechanism in place which helps us tie the past to the present and you can actually see for yourself the buying and selling happening and who is in control at what point of time.
The markets of today are much faster than they ever were. Sample this fact- The NF covered 400 points from 5500 to 5900 in 10 sessions whereas the BNF did 1800 points in the same period. That is opportunity to a trader and if you haven't taken advantage or caught on the wrong side then you need to look closely at what you have been doing.
Like I said before, there is more opportunity in the present and a good tool which helps you to take advantage of this present is a need in every traders' arsenal.
In the premium section I always put up the trading room charts which help us to see the buying and the selling live. Here is the bankNifty chart from yesterday which at every point of time would have shown you who is controlling the market.