Nifty/ BN Weekly View (spot) for 26 Oct- 30 Oct’15

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We saw aggressive dip buyers buying on good volume all the dips in the week. In comparison at higher prices, the sellers weren’t aggressive enough on the day TF and it resulted in Nifty closing at the weekly supply during the week. From last week’s report, we reiterate and maintain “ As long as the index stays above 8185 in the coming week shorts would feel the pressure and an expiry close to 8450 is a possibility.”

The Nifty closed at the supply point mentioned last week exactly at 8295 levels. Last week’s report is up for review here: http://vtrender.com/nifty-bn-weekly-view-spot-for-19-oct-23-oct15/

 

Nifty TPO chart:

weekly & monthly –

N_weekly N_monthly

 

 

Last week on Monday we opened above the high volume spike of the preceding Friday and managed to close above Friday’s highs, accepting value higher during the process. Tuesday and Wednesday knocked exactly at the supply weekly level mentioned of 8295 in the weekly report, but both the dips were aggressively bought and the auctions were neutral centers. Thursday was closed and Friday opened above the 2 day supply zone and managed to close exactly at the same supply point of 8295.

 

We have taken it upon ourselves at Vtrender to point you to the correct levels and the moving parts of the auction process. Don’t get distracted by the noise and the levels thrown at you outside.

 

In the charts above, the weekly shows the acceptance of value higher and above the recent 2 weeks range. The monthly shows a filling up of the 4-month range and the low auction volume zone. We believe the process will continue this week and Nifty above last week’s highs of 8328 can run to 8403 and  8440.

 

8260 is where the support is lower, followed by 8220. We recommend buying all dips to 8220 during the week with a SL placed below 8135 levels. We stick with our preferred view of expiry near 8440 levels or 8440 coming before expiry Thursday.

 

Banknifty TPO chart:

 

weekly & monthly –

BN_weekly BN_Monthly

 

 

Last week we expected a test of the 17770 zone in the BN. The test came on Tuesday, but we were baffled when the index broke the support and went 200 points lower to 17565 in little time. Even more baffling was the gap up open on Friday and the index sticking to the 2-day range of tues and wed.

 

The charts above show the HVN protecting downsides during the week. However overhead supply of 18050- 18085 mentioned first in last week’s report, remains.

 

 

For the week to come we see support at the same 17750-17650 zone and resistance near 18050-85. We need a resolution of this zone this week for a push to an upside target of 18220- 18260 which holds previous resistances. Current volumes do not project a break of 18260 zone in BN on closing basis and we will watch for volumes coming at supply point to see if that changes.

 

 

We have used quantitative analysis and the principles of Auction market Theory to arrive at our levels. For running updates of the daily and weekly moves and to join our community visit – Vtrender Trading Room

 

 

 

 

 

 

 

 

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