Nifty : The break from the news bytes coming from the EU summit was short and swift from 2.45 Wednesday and looks to have completed at the open price yesterday. The reason noted for the completion was
a) A failed auction at 4847 which is the inability of the seller to do a range extension lower.
b) an upward range extension above IB which is evidence of buyer presence in the time frame
c) A buy reaction from 4856 to 4922 ( 66 points) and another one in the afternoon 4850 to 4942 ( 92 points) each of which was bigger than the biggest reaction of the past two session from 4956 to 5008 ( 52) points from Thursday.
Technically we had a neutral day and point c illustrates the presence of buyers back into the market.
Since Thursday was a trend day , for the short term momentum to swing back up, the pull back high of Thursday which stands at 5008 needs to be scaled by the buyers.
Also we have noted the presence of the largest single print volume of the series at 4997 and hence it becomes an important level for the trend.Buyers always are above a high volume print and sellers below.
Friday had big volumes at 4860 and will be an important level to watch next week.The entire auction of Friday was in the oval shaped marked in the profile above- which was the gap lows and the value area high of the composite profile prior to the gap.