The value areas for today are 5450-5439-5428 for the Nifty and for the Bank nifty they are 10064-10035-10004.
The markets have opened at 5435 within value.
We had mentioned 5423-5466 as a zone to watch (or 5408-5486) for changes in the momentum of the markets.
Quite visibly in the past two sessions the markets have chosen to rest between these two points.So we will be in for a period of some range bound moves till one of these two points is taken out.
For the past two days, the market has chosen to sell at the open and consolidate the rest of the day.Let’s see how today pans out.
Today’s trade is different as the market waits for a news trigger.
Let’s wait for the event to get over. there will be adequate trade opportunities on the other side.
5408-5438 are very good ref points. Either side of which you can get 20 points.
Don’t push for a trade. Let the trade come to you.
Rising interest rates pull the market up in the very short term but are the first in the process of an economic slowdown.
Infact they are an indicator to what the think tank actually feels about the economy–it is cooling off.
Next if we see falling commodity prices in the market, we have another indication that the slowdown has moved to a ‘slump’ before we get to the third critical stage which is a ‘gloom’.
It’s been that day with a lot of movement around the market profile value area levels given in the morning.
First the market auctioned all morning below value low.
Then came the news trigger and a good rise straight to POC.
Then the market was deciding to stay between POC and VAH or go the other way.
At the moment it is trying to auction above value high, but has failed twice so far.
A break above value high at 1050 decides the day for the buyers.