27/03/2012

The Nf and the Bn put in b shaped profiles today.

 

When the b shaped profile happens especially off the open price and near a previous day's POC it points to long liquidation in the markets.

 

Nifty Mp 11 27/03/2012

 

The thing which tands out in the profile of today is the single prints from the open ( 5280)  right upto 5230.

 

These single prints are big resistance for the market going forward. Later in the day, the distribution was balnced indicating that buyers and sellers accepted the new price as value.

 

For the auction of tomorrow, accepatnce in the single prints above the prev refrence levels of 5234 would mean a push upto 5280. However a failure at 5234 to move above can invite aggressive sellers back.

 

Bn Mp 12 27/03/2012

 

The BN a;so showed single prints from the previous day's POC 10305  right upto 10170. the levels of 10160 was defended several times by the market and the chart shows at least 4 lows in that zone.

 

This will be resistance now and only an acceptance back in the range would lead us to check if value can change.

 

Today was the first day, the market spent outside the previous 3 weeks range. One day does not make a trend and acceptance or rejection of today's value in the auction of tomorrow will hold cues for the rest of the week.