The Nifty opened above friday lows managed to cross the 7652 level of support mentioned friday and challnged friday’ sellers above 7695- 7720 to close at day highs.
Nifty Aug F :
Background / Previous Auctions :
(updates in bold)
Medium Term :
The Friday May 16th range of 7560- 7125 (spot prices) forms the backdrop of the move we may see in the Nifty.The auction remains positive as long as we close above the highs of that day (May16) The largest drop seen that day was 432 points.Targets for the Upmove remain 7900 spot and 8300 in the medium term. Support at 7100 spot.
Short term :
7720 Aug F has stuck buyers and would be the focus of the market’s attention . Seller is driving this leg lower from 25th July and support for the buyer is at 7652 F . Second line of support is at 7530 F
(update- 7720 F got a visit but OrderFlow showed longs cashing out. Buyers may get support if index holds 7680F tomorrow)
Observations in Monday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) The neutral extreme day from friday did not follow up
2) Sellers at 7690- 7720 were tested in the second part of the session which finished in a spike
3) Spike high of 7725 is the reference line for continuation in the rest of this week.
Hypothesis for Tomorrow
Hypo1) The OrderFlow chart shows sellers holding up at 7720 F and hence a short at or near 7720 near the open with a SL of 7746 ( stop and reverse) can bring 7690. A further move below 7685 will bring 7652 quickly.
Hypo2 ) New longs can be taken above 7747 with stops below 7720 for 7782 and 7804.
BankNifty Aug F :
Background/ Previous Auctions :
(updates in bold)
Medium Term :
Friday May16th huge range of 15733- 14430 Spot Prices provides a background to the entire moves we may see in the BNF for some time.
Short Term :
Inside day in BNF ahead of the RBI event. Possible RBI range for tomorrow is 15633 F to 14960 F. 15388 is vwap of last week in F and a must cross for bulls.
Observations in Friday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Inside day with supply at 15380 F holding up.
2) Vwap for both days at 15300.
Hypothesis for Tomorrow
Hypo1) Long ideas into play above 15388 F for 15505 and 15633.
Hypo2 ) Below 15250 the BNf weakens to 15160 and 14960 below that.