The auction today continued doing the job it has been doing this week of pushing sellers highs. Buyers are protecting the lows and sellers are moving higher.
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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) ( Last 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 7500/ 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 turn into support Support for next week is at 7725 F
Observations in Today’s session : https://www.dropbox.com/s/ulxgo1caztqckg8/aug_nf.png 1) Yesterday’s sellers neat 7770 NF were pushed higher and NF found new support at 7770 F 2) Sellers seen coming back 7795- 7810. 3) Profile suggested another layer of support built at 7740 F
Hypothesis for Monday : Hypo1 ) If we open above 7811 on Monday then NF will move upto the 7846- 7852 zone mentioned in yesterday’s post
Hypo2 ) An open below 7810 would bring a test of 7770 again and a failure there would mean a revisit to 7740/ 7730.
BankNifty F : |
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Background/ Previous Auctions :
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. the zone at 15000 F should offer support early next week.
Current day Observations : https://www.dropbox.com/s/2cm8nnpzrhutlta/aug_bnf.png
1) Our short term view on 15180 F which we have been carrying for the past several days played out today as the area stopped the up auction from 14960 today. We saw sellers coming back at 15180. 2) Buyers were seen earlier at 15040 F
Hypothesis for Monday :
Hypo1) An open below 15190 on Monday would mean that we revisit the buyers seen at 15040 again . Right below 15040 is the second line of support at 15000. However if 15000 breaks we go back to 14850.
Hypo2 ) An open above 15195 will invite short covering ( OrderFlow to confirm) and should result in an upmove to 15416 intra day |