The NF put in a neutral extreme day and closed at day highs in imbalance.
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Nifty Aug F |
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Background / Previous Auctions : (no change) Medium Term : The Friday May 16th range of 7560- 7125 (spot prices) forms the backdrop of the move we may see in the Nifty.The auction remains positive as long as we close above the highs of that day (May16) ( Friday low was 7540 and close of 7568) The largest drop seen that day was 432 points.Targets for the Upmove remain 7900 spot and 8300 in the medium term. Support at 7100 spot. Short term : Aggressive buyer seen earlier last week at 7652 F . New buyers seen on Monday at 7610. Resistance at 7690 F violated on good volumes and is likely to turm into support Observations in Today’s session : https://www.dropbox.com/s/ulxgo1caztqckg8/aug_nf.png 1) Neutral extreme day with close at highs. 2) Buyers seen at 7665 NF and short covering above 7690 F Hypothesis for Tomorrow : Hypo1 ) A failure to follow up above imabalance highs of 7755 would mean a revisit to 7726 and 7691/98. The weak orderflow in the chart above supports this possibility. Hypo2 ) If we open above 7755 then NF will go to 7771 and 7811. BankNifty F : |
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Background/ Previous Auctions : (No change from previous report)
Medium Term : Friday May16th huge range of 15733- 14430 Spot Prices provides a background to the entire moves we may see in the BNF for some time.
Short Term :
15180 F was a previous support and likely to turn resistance now. We watch orderflow at 15140- 15190 as it can be a pivot for 15400 or back to 14800. Current day Observations : https://www.dropbox.com/s/2cm8nnpzrhutlta/aug_bnf.png 1) Buyers supported prices near lows and BNF eventually rose to close near day highs of 15135
2) OrderFlow on the rise above 15040 was not very certain and BNF can come back to test 15056 tomorrow. Hypothesis for Tomorrow : Hypo1) Failure to cross above imbalance highs of 15135 would mean that BNF goes to test 15056 where buyers should respond. However if orderflow does not show new buyers then BNF will drop back to 14960/ 14980 Hypo2 ) An open above 15140 would put 15180 and 15250 resistance into play. |