We watched today the Nifty taking out 6001 NF and 5978 NS in the closing minutes of trade only to trade above them at the close
In profile we say that buyers live below Value Low and sellers above value high,
The buyers tried every bit to pull price above 5060 levels since morning, but failed. They were met with aggressive sellers in the closing hour who made the Nifty tank by about 80 points again.
The Order Flow charts we employ, noticed a lack of positive delta around 6070 levels something similar to the one we saw in the Bank Nifty yesterday in that last run up between 12535-12600.
Delta is the difference in the volume traded at the bid-ask between buyers and sellers and is useful to know who is gaining the upper hand at market turns.
We also saw a lack of negative delta in that last run towards 5985 levels, implying that the selling was not done by strong hands and the Nifty future was up 30 points by the close.
However the broader truth of the market is that value was created lower and till price closes up above value high for two successive periods, buyers do not have much of a chance from a Swing Trade perspective.
So watch you value areas closely
The bank Nifty did well to defend the 12225 region, but the seller seems to have established himself at 12370 zones.
All in all, the values posted by Shai in his chart last night still hold good in both the Nifty and the Bank Nifty.