Consolidation day again today but just like yesterday we noted a buyer sweeping the market orders at 7630 about 90 points higher than yesterday’s 7539 in the Nifty July F. Moral : back in dip buy mode
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 :
Buyers seen holding up the index F at 7466 at 7538 yesterday and today at 7628 . Resistance to the upmove of the past 3 days near 7685.Supports now rise to 7540 conservative and 7580 for the trend. Higher levels of 7745 possible if we cross above 7685.
Observations in Thursday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) Normal distribution curve with a value area of note and important reference area for tomorrow
2) vwap centered at 7647 and value areas at 7656-7649-7634
3) Buyers noted at 7628 but upmove above 7662 to 7674 in the afternoon session did not see follow up buying
interest
Hypothesis for Friday :
Exit of value and range is the trade again for tomorrow
1) If we auction above 7685 then longs are in play with sl below 7660 for 7720/ 7745/ 7766.
2) Auction below 7621 will lead to 7582 and a possible revisit to 7737 if orderflow does not show buying interest at 7580.
BankNifty 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 relinquished control at 14852. BNF on the way to meet old business at 15470/ 15520.
Observations in Wednesday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Normal distribution with a vwap centered at 15255
2) Value areas at 15288- 15248-15216
Hypothesis for Friday :
As in NF an exit of value and range is the trade again for tomorrow
1) If we auction above 15335 then longs are in play for the 15470 levels.
2) An auction below 15140 will invite long liquidation to 15023 and will have short SL above 15180.