Here is a pnf chart of the Nifty future for the past 30 days.
We have added three heat map profiles to it whose colors have to be read as VIBGYOR, where red is the biggest volumes and Violet the lowest.
Today’s incomplete profile shows an accumulation of volume at 5812-5817 which is the DPOC on our QT charts and yesterday’s show high reds at 5835 which is the POC from yesterday.
The chart on the immediate right of these two is a 30 day chart which clearly shows the highest volumes here currently at 5810-5830 where the NF is now trading.
To the right of this chart is the 5 day chart where again you can see the high volumes being built.
What does the chart tell us?
In keeping with the balanced nature of the profile so far, a directional move is possible again.
We keep our eyes on 5835-5850 where a move up above can mean rotation in the violet 5940 to 5850 zone to make up the volumes there.
It becomes a double distribution with 5854 as a stop loss and a further down move below.
Looking at the volume chart in the pane below, one notices the absence of big green candles in the pane.
So the Move down has a higher probability than a move up.
The largest buyer was at 6040 whose liquidation resulted in this big drop.