5900 spot

here is a daily bar chart establishing the downtrend from 63xx levels to 51xx levels.

A composite profile of daily prices is drawn across the chart.

Untitled 29 5900 Spot

There are two profiles, one for the entire down move from early November to the mid feb lows and the second pne from 5177 to current prices.

As can be seen prices closed near the point of control for the entire down move at 5900-05 spot.

The rally from 21st march is still running strong and there is no signs of any visible weakness on charts.

That is on the daily level.

However on an intra-day basis, for tomorrow, we have a conflict on our hands

1) resolution of the balance zone 5835-5880 has been to the upside, suggesting more upmoves. Incidentally the balance zone produced a 86 point upmove at today’s closing prices based on NF.

2) we had a Double distribution day today which is also a sign of continuation.

3) The profile however also throws in a 3 I day, which is generally suggestive of capped up-moves at least till the last hour of the day.In a 3 I day, the highs are usually made within the first 60-90 minutes of trading.

Hence for tomorrow, if we do open and stay above 5959 in the first hour, I see a move to 5985 NF and 6012 NF, within the hour.Weakness will be on a break of 5932 towards 5905 and 5880.

For the upmove to continue, NF should not trade below 5880 tomorrow.