Today’s action in the Nifty and the Bank Nifty was a game changer !
The only “fly in the ointment” would be the Market profile needed confirmation which is awaited at the open tomorrow to see if the move down was genuine or not– by that we mean whether it was new shorts or long liquidation which pulled the index down 90 points in 45 mins.
In profile we always wait for the activity the next morning to confirm or reject a move the previous day.
Let’s look at the weekly charts :
The shaded region is the value areas.The profile on the right is still developing but could play a role tomorrow.
After a break down below 6165 NF, the pull back if any should restrict itself to 6185/ 6190.
On the lower side the bigger level at 6085/ 6090 will decide the short term trend for this market.
This level of 6085-6090 may even turn out to be an excellent ‘buy the dip’ level. Below 6045, this uptrend may be over for the short term.