For the second straight day the auction managed to push sellers higher . Buyers are protecting the lows and sellers are moving higher.
|
Nifty Aug F |
|
Background / Previous Auctions :
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 8th – low was 7540 and close of 7568) The largest drop seen on May16 th 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 the current week is at 7725 F from the auction of last week.
Today strong initiative buying was seen at 7772 F and is a short term support into expiry.
Observations in Today’s session : https://www.dropbox.com/s/ulxgo1caztqckg8/aug_nf.png 1) Sellers near 7806 NF were pushed higher and NF found new support at 7770 F 2) Sellers seen coming back 7855- 7880. 3) Day type was trend day with close near highs
Hypothesis for tomorrow : Hypo1 ) The market finished imbalanced into the close and the imbalance may extend to 7908-7916 in the morning session. It’s good to be long on a dip to 7850 for 7886/ 7916
Above 7916 we are set to welcome 8000 in this week itself on short covering.
Hypo2 ) Below 7844 today’s buyers lose momentum and NF will drop to 7816-7806 for a test.
BankNifty F : |
 |
|
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 :
Last week’s levels of 15180 showed buyers early in the morning as BNF started a big 400 point move early. Holding above 15180 F the BNF is likely to extend the imbalance to 15657 and 15876 this week.
Current day Observations : https://www.dropbox.com/s/2cm8nnpzrhutlta/aug_bnf.png
1) Buyers seen throughout the day from 15180 to 15400.
2)Hypo1 and hypo2 from thursday’s post played out fully and to the mentioned levels.
Hypothesis for tomorrow :
Hypo1) The BNF finished imbalanced and an open above 15470 would mean 15540 early at the open . Idea would be to buy dips upto 15340 tomorrow for 15470/ 15650.
Hypo2 ) There will be loss of momentum if BNF falls below 15312 in which case shorts can be taken intra day for 15190 revisit. |