Yesterday at the close, we felt that the selling would stop temporarily and a pause or a small pull back was in order.
The market opened strong, tried very hard to get past POC in the first session but was met with determined sellers who pushed it below VAL initially and unsuccessfully below PDL ( prev day low's) before some short covering took the markets right back to 5327 where sellers came back again.
The result was a neutral center day with two range extensions on either side of IB being rejected and buyers and sellers settling for a close at fair value which was the day's vwap and DPOC.
A neutral center day has high possibilities for a break out trade in the next session as one party concedes control to the other. The best way to trade this would be to place the trade on exit of value and double up on exit of range.
Within value, buyers and sellers would be deemed equal and rotations would continue.
One of the classic things which stood out in the auction of today, was the BN not making it to new lows along with the Nifty. That always stands as an example that the selling is not uniform or strong. The BN held up it's lows near the 2nd HVN we discussed yesterday and finished a Normal Variation day
It it stays above value high in the IB tomorrow, it will be our cue that the NF is poised for an upside breakout.