The Dip buy Mode continued as the lower open was bought and the early sellers liquidated.
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 and 7538 and at 7628 . Resistance to the upmove of the past 4 days near 7685 F (high seen on friday of 7692) .Supports now rise to 7540 conservative and 7580 for the trend. Higher levels of 7745 possible if we cross above 7685.
Observations in Friday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) Trend like day after a weak open with a pull back low at 7635
2) 7634- 38 saw huge volumes again as early sellers got liquidated and new buyers entered.
3) vwap of the trend day was placed at 7647
4) The Open below value low took the market lower to 7697 but there was visible orderflow change near 7608 as responsive buyers prevented the index from dropping further. The rest of the auction followed the 80% value area rule as we re-entered thursday’s value.
Hypothesis for Monday :
1) Sellers were seen above 7685 to 7692 and prevented the auction from climbing higher. Hence at Monday open we wait to see if new buyers enter above 7692 to take the index to 7766.
2) An open below 7685 will put the index on track to revisit 7662/ 7647 and a possible 7634.
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 :
BNF met the projected 15470- 15520 level given for the past 4 days here ( high seen of 15510). We wait to see if we auction above 15510 from Monday. Supports for the current week at 15160 F followed by the old one at 14830.
Observations in Friday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Trend like day with pull back low of 15281
2) Vwap of the trend day at 15300
Hypothesis for Monday :
1) Long liquidation was seen at 15510 on friday. Hence we wait to see if new longs come back above 15510 on Monday. If they do then immediate objective above 15510 is 15640 with sl below 15470.
2) If we don’t open above 15510 then BNF should remain in the 15260- 15370- 15510 zone.