The auction of the week gone by held last month’s panic lows of 7660 mostly except for a spike lower on Monday which did not confirm the next day . Higher Time Frame is seen responding near 2014 POC of 7520- 7620 but the shorter time frame is sensing a short opportunity staying below 7850 – 7940 levels. Our Order Flow charts picked up short buildup last week near 7850 again. The Option market is confused on the direction as evident in the 500 point differential in the top strikes. The futures are having short buildup near 7850 F but are not showing new shorts below 7660F for 3 weeks now. With FED and a settlement week trade to follow this could still be a 7160- 8280 series, so there is opportunity for the nimble trader.
Last week’s post up for review here- http://vtrender.com/nifty-bn-weekly-view-spot-for-07-sept-11-sept15/
Nifty weekly :
On Monday of the week gone by , we drove lower below 7660 spot( low of last month) and finished in a spike at 7540. On tuesday that spike was rejected and we closed above 7660 again. On wed we noted sellers at 7840 and prepared for a drive down but got a gap down instead which held the 7660 mentioned and moved higher to 7865 where again friday we saw selling.
The last 3 days were forming a balance between 7679 and 7865 which looks incomplete in the lower half ( auction needs to go there)
So for the weekly next week, we will keep an eye on this emerging balance with bounds at 7660 and 7890 which are the 2 breakout levels for us in FED week and should have enough in them to tilt the inventory balance.
1st support below 7660 is at 7550 followed by 7318 and 7230.
1st resistance above 7892 is at 8020 followed by 8086 and 8170.
From the coming week, we are beginning to base our levels not just on LVN’s and HVN’s but through a proper application of Quants and the correct principles of Auction Market Theory.
For a running update on our weekly levels, do join the Trading Room where our community interacts in market hours.
BankNifty weekly :
Unlike the observations made regarding last month’s lows for the Nifty above, the BN tried 3 times last week to close above that monthly low of 16660 but was not successful.
on Monday the BN spiked lower to 15762 . On tuesday we saw a counter reaction from the spike lows which took the index to 16780 on wednesday. Thursday gap down was bought at 16192 but friday we saw selling come again from 16780 again.
For the coming week we have rising support at 16338 which can protect against immediate downsides. Resistance seen at 16780 and at 16940 above.
Above 16940 we will have a strong positive bias for an immediate 17100, 17305 and 17474 during the week.
Below the 16338- 16260 support band the index can drop to 15900 and 15069 during the week.
We have used quantitative analysis and the principles of Auction market Theory to arrive at our levels. For running updates of the daily and weekly moves and to join our community visit – Vtrender Trading Room