Banks led the second straight day of gains as the main index closed 200 points over Monday’s lows in 2 days.
Nifty July F :
Background / Previous Auctions :
Medium Term :
The Friday May 16th range of 7639- 7182 looks like a completed bell curve now as the market has successfully auctioned out the entire range, building volume. This zone forms the base of the move we may see in the NF.
Short term :
Buyers seen holding up the index F at 7466 and today at 7638. Resistance to the upmove of the past 2 days near 7685.Supports now rise to 7540 conservative and 7580 for the trend. Higher levels of 7745 possible if we cross above 7685.
Observations in Wednesday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) Day was 2 different auctions rolled into 1 as we saw buyers and sellers contesting in the first session before the buyer took away everything in the closing hour.
2) NF saw 2 spikes from 7580 to 7643 and from 7625 to 7662
3) Failed auction noted at 7535 F
4) Huge buying volumes detected at 7537- 7539 F
5) day type was neutral extreme
Hypothesis for Thursday :
1) We are looking for signs of followup above today’s spike high of 7662 at the open above which the NF looks at 7685 immediately and a possible 7745 in next 1-2 sessions
2) Failure to open above 7662 would mean test of the 7622- 7625 zone for unfinished agendas. If orderflow turns positive here we could see a 7625- 7685 kind of session.
3) Below 7620 the Market goes to check the spiking volumes at 7580 again.
BankNifty F :
Background/ Previous Auctions :
Medium Term :
Friday May16th huge range of 15888- 14418 June F provides a background to the entire moves we may see in the BNF for some time.
Short Term :
Sellers relinquished control at 14852. BNF on the way to meet old business at 15470/ 15520.
Observations in Wednesday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Trend day with close at extremes
2) Pull back low at 15136 is new support
Hypothesis for Thursday :
1) Day after trend day we watch open for signs of continuation. Higher targets are at 15470/ 15520 if we open above session highs of 15344
2) An open below 15344 would bring 15241 into play immediately where orderflow has to be watched for buying activity
3) If 15240 breaks then BNF can slide down to pull back low of 15140.