Welcome all to the first trading day of a new month. Our new series of June is also a day old !
What kind of a trading day we saw yesterday : a neutral day, which gives no forward implications.A neutral day can also close at one of the day extremes.
Coming to today’s action, I had a feeling in my last post yesterday that the last hour an hour action was designed to catch some technical analysts on the wrong foot. That trick does not work with the student of profile.
We may see a narrow range again in the morning session and I’m expecting this to break only in the second session of the day.
Trade well !
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9.55
Value area low is 5022 and Value area high is 5051.Point of control is 5037.
Market is bound btw these levels, so to speak.
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11.00
I want to add 2 more ref levels besides the 5004 and the 5065 levels given.
These are 4990 and 5079. All NF.
These represent the outer ranges of the short term bracket, we currently find ourselves in.
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11.50
Here is a price profile chart of the Nifty future for the past 4 sessions.
As you can see, Nifty is currently establishing value in the lower part of yesterday’s profile.
The balance of the profile shows the absence of short/ inter mediate term players from the market, who are letting the market churn to negotiate value.
However if you look further, you can see tell-tale signs of selling near our 5065 levels.
This along with the fact that we are moving value downwards, leads me to believe that we will possibly move south towards 4955-4967 levels, where there may be a re-negotiation of value.
If I am right about this, then the market should not get above 5078 NF.
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12.35
Trade Alert : sell Bank Nifty
Cost : 9164
Sl : 9200
Target : 9087.
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12.55
Bank Nifty at 9087.
Book out.
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13.23
We are already at the 4955-4967 levels projected in the chart at 11.50.
I chose to go with the Bank Nifty sell, rather than Nifty but it was the same trade.
Watch for buyers to step up here and rebuild value.
I will post updated chart later.
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