Ahead of the RBI announcement tomorrow, the contrasts we are seeing in the auctions of the BankNifty and the Nifty continue.
After the DD seen on Friday, the BN spent the entire day auctioning out in the low volume single print zone whereas the Nifty was comfortable in staying below the lower end of the single prints most of the day.
As the DD is still alive from Fridays' distribution we continue to monitor it as two different value areas with a POC at 5284 above and another one at 5216 below. We can use the above information to make our bias tomorrow with the sell confirming below 5216 and buyers back above 5284.
After today's distribution in the middle, the BN has more of a balanced structure with a POC at 10422.The three day balance is a great trade and an exit of value and range will be an excellent opportunity as inventories re-align after the RBI announcement tomorrow.
10476- 10422- 10323 is the value area for the 3 day balance developing in the BN.
The chart below has the 3 day composite profile with the NF on the left and the BN on the right.
