Everybody played for a bounce today and everybody got it ( one of those rare times )
With the US futures holding the 1092 level in Friday’s trade, the prospect of a big gap down from overnight cues was discounted and the only possibility was to see if the market could put in a neutral day today to arrest the slide and possibly move higher in the next few sessions.
It turned out to be a neutral day alright, but just when we felt it was going to be a day closing at the developing Point of Control, there was range extension in the last hour to help this market reach 6160 and a possible 6195 in the coming sessions.
This market should now stay above 6112 which is VAH on Volume profile today.
The Bank Nifty did even better than the Nifty and had strong buying volumes off the open, which made it more of a “buy the dip” candidate throughout the day.
The Bank Nifty has been the leader for the market up and down.Remember we had mentioned that it was weaker on the day when the Nifty had put in a high at 6350 levels.
Look at Bank Nifty again to take us out of this correction or trend change. It’s the leader of the pack, led by the ever dependable SBI for market direction.
As for intra action tomorrow, value areas will be your guide.