Nifty :On Friday we saw a DD- Double distribution in the markets. We consider a DD to be 2 separate auctions as a row of single prints divides the two zones the market operated out of during the day.
4668- 4707 can be considered the upper distribution which was in the lower zone of Thursday’s profile which now is a balanced 3 day auction.This was pointed out through twitter on Friday in this update : http://screencast.com/t/ueSdJxu4
The lower distribution looks incomplete at the moment targeting 4608 which is the POC of an earlier balance profile.Below 4608 this market will gain downward traction looking to target levels of 4378 later in the series.
If the Market manages to pull above 4676 during the week and close above it, the downward momentum may be lost.Monday’s PPO is at 4618 and PS1 at 4588.
BankNifty :
The prominent POC near 8085 stalled the market for a considerable amount of time on Fri. We saw an open drive earlier in the day above Thursday’s spike high . However inability to take out the value high around 8120 resulted in a move lower in the afternoon.7819 is the POC from 20/12 which will be the immediate ref line.
This chart will look at reaching 7421 should the down move continue on Monday.
