Turnaround tuesday lived up to it’s top billing as we broke out of balance in a 2 way auction which showed sellers near the top and buyers at the bottom
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 till 7685 F is not taken out on closing basis. Short term downside looks arrested for the time being as we did not seen huge selling below 7466.
7265- 7685 range expected till expiry. We will narrow it down as expiry nears.
Observations in Tuesday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) Day low was again at 7467 – 2 points above the level of buying we have been observing and mentioning in past 2 posts
2) We fell short of the day objective of 7565 by a few points but buying at the lows was the recurring theme.
Hypothesis for Wednesday :
1) Signs of selling into the highs at the close could mean a drop at the open to 7522 or even upto 7504 for a test . This should be a buy opportunity for 7565 again as long as we don’t slip below 7494 tomorrow.
2) If we stay above 7555 at the open then we head towards 7588/ 7625.
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.
Short Term :
Sellers showed up at 15725 and broke an important support near 15900. Seller is in control till BNF does not cross above 14852.
Observations in Tuesday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Trend day with a pull back low at 14665 and a close at the extreme
2) Buying orders seen at 14680 and 14800 on the way up
3) VPOC at 14860
Hypothesis for Wednesday :
1) 14850 had equal buy/ sell volumes and hence we would monitor OF on a dip to 14850 in the morning session for signs of new buying. If we hold 14850 tomorrow then BNF can rise to 15070 and 15300 by friday
3) A move below 14850 will send the BNF back towards 14770.