Here are the composite Profiles of the Nifty and the bankNifty Aug futures.
We are tracking a large down auction from the 23rd of July in the Nifty and an even bigger move in the BankNifty from the 20th of June.
The last two weeks of the auction are shown in the above charts.
Most auctions start and end with either single prints ( single alphabets in charts ) or in balanced profiles.
We are seeing a balanced profile in both the Nifty and the banknifty which would mean that there is a temporary halt in the selling taking place.
Balanced profiles would show a greater chance of price visiting the area in the near future as opposed to single prints.
In the coming week, we should be witness to a pause though there is no confirmation on charts that the auction has reversed to buy .
So holding 5515 in the Aug future a move above 5602 next week should target 5644 POC of the trend day of 8th June and further above to 5690 which has single print sellers.
Any move above 5691 would put the auction back in the Balance of 31st July- 5th Aug composite and put 5779 within reach.
We expect resistance to build in between 5750- 5779 and shorts can be re added here if price makes it big to this point.
All levels are Aug Future.
A break of 5515 F would bring 5427/ 5339 and 5251 in Aug futures.
The BankNifty Aug Chart has formed a prominent POC at 9850 which would mean a start at this point on Monday morning.
Prices always tend to come back to a prominent POC even if the open is away from this point.
Holding above 9850 the BNF can make a move to the top of the single print at 10080 and then reach 10297 from the profile dated 31st July.
The re sell zone for the BNF is the region of 10180- 11297 ( composite VAH- top of balance) and it is a trend change if the BNF manages to scale above these levels during next week.
A move below 9850 and then 9720 should bring 9447- 9468 Aug F and then supports lie at 9215 followed by 9022 F.
All levels expressed above are for aug future only.
Composite trading is easy and bias should be formed for the short term based on whether price auctions above or below the value area and range of the last composite.