In our post yesterday we talked about the possibility of a sentiment change after a longish break from the global action. The result was a gap down opening which after failing to close in the IB period led the market to close near the lows of the day.
The result was a normal variation day with value shifting lower and a range extension on the lower side after the IB break. Unlike what we saw in that 200 point rise in the Nifty from the expiry lows, these past 100 points have seen range extensions on the lower side proving yet again how easy it is to see the strength of buyers and sellers in the market place if we follow simple things like IB and value area closely.
The NF spent a lot of time in the single prints from 30/3. The effect was that this strong buyer from 30/3 was thoroughly neutralized today as this previous buying tail got converted into a value zone today.
The base of the single prints at 5234 and the purple lines at 5204 represent immediate supports.
The BN took support at the top of the single prints from 30/3.
This profile of 30/3 will be an important swing term indicator for both NF and the BN now for the next few sessions.