Unable to hold on to the gains of yesterday at the 7740- 46 level the Nifty collapsed to finish at day extremes again in a normal variation day
Nifty Aug F :
Background / Previous Auctions :
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 :
Support for the buyer is at 7652 F . Second line of support is at 7530 F
Observations in Today’s session :
https://www.dropbox.com/s/5bdnn5fhjg5q7ob/nf_2.png
1) Early buyers liquidated at 7746
2) Day type was a Normal variation close at extreme
3) vwap was at 7732 just above yesterday”s 7720
Hypothesis for Tomorrow
Hypo1) The imbalance and the break below 7706 would mean 7752 and 7725 will be tested again. Sl for that view is 7725
Hypo2 ) Above 7725 the NF is back with buyers again and invites another round of short covering.
BankNifty Aug F
Background/ Previous Auctions :
(No change from previous report)
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 :
15388 is vwap of last week in F . BNF was triple inside between 1 and 5th Aug
Observations in Today’s session :
https://www.dropbox.com/s/5bdnn5fhjg5q7ob/nf_2.png
1) The BNF broke through the triple inside day and also violated support at 15180
2) vwap of the trend down was at 15192
Hypothesis for Tomorrow
Hypo1 ) The BNF finished in imbalance and the imbalance target of the move is still at 14930/ 14960 F. Any rise to 15180 is a short with sl at 15250 for the 14960 target.
Hypo2 ) The downmove seen today gets negated on a cross above 15250 F and BNF can rise quickly to 15340 and 15420.