Levels and Plan for 10th July

Horizontal development came through today as the market found initial sellers then buyers and finally closed the session with sellers having a small edge in the day


Nifty July F :




Background / Previous Auctions :


Medium Term :

The Friday May 16th range of 7639- 7182 looks like a  completed bell curve now as the market has successfully auctioned out the entire range building volume. This zone forms the base of the move we may see in the NF.


Short term :

Sellers seen at 7812 NF. Trend remains down below 7645/ 7650 F.




Observations in Wednesday’s session :


1) Profile auctioned out the 7620 – 7650 zone for the most part of the day


2) Responsive buying seen at 7570 F


3) Failed auction noted at 7669 signifying an inability to rise up today


4) The 7652 zone pointed in last night’s post resisted the market for the most part though there was stray volume above it .Selling volumes came from 7637 in closing hour


Hypothesis for Thursday :


The 7620- 7650 zone is now well traded and a zone of uncertainty. An entry either side away from this zone has the best risk reward ratio


1) The Market has to climb above VAH 7656 for a chance to meet 7708/ 7720 and possibly 7755 where previous buyers are stuck. Sl for that swing trade will be below 7620 tomorrow


2) We pointed 7555F as good support but the market stopped at 7567 on the way down today. Weakness remains below 7620 F and sellers can still look at 7555/ 7500/ 7448 as potential targets bekow 7620 with stops above 7655.


BankNifty July F:




Background/ Previous Auctions :

Medium Term :

Friday May16th  huge range of 15888- 14418 June F provides a background to the entire moves we may see in the BNF for some time.


The updated auction of the JulyF is here : http://prntscr.com/3wrs9g


Short Term :

14930 is the last support in the BNF below 15470 before it runs to the lows of May16th at 14418.


Observations in Wednesday’s session :


1) Hypo 1 from last night’s notes played out fully in today’s tape and the target of hypo2 was met perfectly.


2) Profile built volumes at the lows and mostly in the spike zone of yesterday. This indicates acceptance of lower prices.


3) The lows of 14912 are unsecured or poor and should be violated again after any bounce


Hypothesis for Thursday :


1) The BNF can be traded with a small positive bias if we open and stay above 15067 in the IB tomorrow. In this case the BNF can again trade to 15165- 15180 which should be watched for signs of selling.


2) There’s also an easy 90 points for longs above 15210 to 15290 if we cross above 15200.This can be traded with stops below 15180.


3) Below 15067 the Market should be weak towards old supports at 14914/ 14950.