As expected after the strong US close, the market gapped up big at the open this morning, very close to the HVN at 5465 we have been tracking from well over a week.
Infact it was to be the high of the day.
Ideally it was the perfect opportunity to set up a short at a proven level, but in view of the large gap and the possibility of continuing momentum, not a high probability trade.
Anyways the sellers entered and drove the market lower to Friday’s lows of 5397 another HVN, from where the buyer emerged again.
Incidentally in profile we also consider a gap up as evidence of a buyer hand.
So we have a buyer at 5397 and a seller at 5465. It remains to be seen which side it resolves. It’s two-all at the moment.
The other HVN of 10807 in the Bank Nifty played out again as it did on friday.
A perfect copy of the action of friday below 10807, with similar results.
This time we were not to be left out.
So this one is setting up as 10705-10807-10920.Either side 100 points to be made.
It remains to be seen if both the indices move up together.