Big money returned back to the markets today and put in a big range day with the Buyers taking the morning and the sellers claiming the afternoon.
The result was a trip into the value area of last week and a return into the low volume zone pointed out yesterday.
For the day, value remained sideways and even though the day closed at it's low point, there wasn't very clear evidence that buyers had thrown in the towel.
The thing which stands out in today's session though is the importance of the region around 5430 for the seller. He once again arrived and seized the momentum at that level.
5430 Nf is the vwap of the selloff as also weekly value area high from last week as also last month's closing figure (Feb).
What's not clear however is the ability of the Buyer to defend levels of 5220 and 5180 lower down. Should these be tested it will be important to watch reactions at these points. 5220 and 5180- are both high volume nodes with 5180 serving as a swing top for a long time through 2011.The 5230- 5300 zone continues to be a low volume zone right from 2011 with two gaps already in that area.
The POC of today is fairly prominent and should a squeeze develop, the late afternoon sellers will be forced to cover quickly again.
BankNifty :
The BN chart also shows a prominent POC and a close far removed from value.
The High volume zone around 9950 will be an initial point of interest , should the market continue down.