The Nifty Futures had a range of a 150 points during the week with high volatility.
We saw buying emerge from the lows and bouts of selling at the highs.
The NFP number on friday in the US will certainly give the market a gap open.
From a profile perspective this open will be an OAOR weekly and hence can be a big mover.
On the charts we see 6090- 6134 as a mover profile holding the key to the outlook for the week.
On that day we had seen both longs and shorts initiating positions in the futures.
Hence it’s a profile which contains some stuck longs and some new initiated shorts from that day.
All the more reason for the market to move decisively from that level during the week.
It it manages to stay and close above 6134 we get shorts forced to cover and the market starts looking at 6222/ 6267 seriously through the week as a target.
The vwap of the sell off from 6353 spot levels is at 6085- 6090 spot . Hence shorts will not be comfortable with an auction over this point.
If we do open above and come back into Friday’s range as also the weekly range of the Nifty , look for the 80% weekly to complete as the profile showed both buyers and sellers during the week.
Weekly values are 6061- 5995- 5981, which means we visit last week’s lows if we come back into the weekly range again.
It’s simple – In market profile it’s the same principles and rules of the intra day trade but we are applying it to the weekly time frame to help us carry over profitable trades.
The BankNifty profile shows a large value area developing between 10300- 10100 and a rejection of prices below 10100 seen in the single prints.
The seller from the profile of the 30th is still active at 10380. Up ahead we see sellers at 10700 also in those single prints there.
If we do get above 10380 the gap to 10446 is the immediate target and can be followed up by a visit to 10520/ 10540.
An upward break of the profile over the 10380 level should be good to reach the bottom of the single prints near 10650 eventually during the week.
However failure to hold a gap open can invite a slide through the value area and the 10300- 10100 value area trade will work swiftly.
There is opportunity and good trade setups into next week.