The small range in NF yesterday produced a power packed breakout on the back of news from the RBI this morning.Looking back such trades are easy to take on an exit of value and range as longer time frame takes advantage of the value developed to move price in their direction.
Tomorrow is expiry day and we are more concerned with structure than any big price changes as we look forward to the series in Feb.
The structure in both NF and BN is a double distribution. What happens in a DD is that the market may take one of the 2 options below
a) auction in the upper half ( 5150- 5100 NF Jan) and complete the distribution
b) Go down and cover the single prints marked in blue and revisit the profile or the lower distribution . Such a revisit will provide n excellent buy the dip if the buyer has to keep his control. A failure on the other hand will mean that buyers are losing their grip on the market.
5052 is the reference level for all longs in the market now. The touch of the previous HVN of 5133 has shown selling volumes which were evident in the closing minutes of the trading session.