A quite market early in the session turned on it's head later in the day as the screaming weakness in the bankNifty spread to the Nifty and the market witnessed it's first uncorrected 102 point drop in days.
We had noted in yesterday's charts that there was no selling tails in the profiles at the highs.
Let's look at what happened today :
First the BankNifty as it led the move lower today
Nifty :
The bankNifty chart shows clear selling straight off the open. Once can see the single prints extend right through the value area of the previous two sessions.
This is decisive and shows an initiative seller which can have longer term implications on price behavior at the very top end of today' range.
Lower down we see the market continue to build volume in a p-previously poor ly traded zone However the spike later in the close has more anomalies and does not look like having value. This is evident in the POC which stayed higher at 11010.
So these late sellers may not be able to withstand a market trying to rise and a move to cover the anomalies and reach 11010 is a real possibility.
In the Nifty Future, we saw a responsive seller show up in the lower range of the profile of the past two sessions. This is visible in the form of the single prints starting at 5586. This seems to be more long liquidation at first glance rather than some active new selling.The profile shows the movement through the low volume zone being sharp as had been discussed in the weekend analysts made here
The composite structure gives bigger odds for a rotation at current prices and a move back to test the broken zone just under 5580. That level will be important for the buyers to take back on the retest.as a failure there can open fresh downsides