A 2 way auction saw the Nifty open strongly up but lose all the gains by the close
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 . .Supports now rise to 7540 conservative and 7580 for the trend. Higher levels of 7745 possible if we cross above 7685.
Observations in Monday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) A 2 way auction with a seller seen at 7719 and buyers holding the index up near 7685.
2) vwap of the normal distribution was at 7695
Hypothesis for Tuesday :
Hypo 1) 7675/80 range is established support for the index and as long as we hold above it the NF should go back to 7704/ 7720 and 7764
Hypo 2) Below 7675 the index will run down to 7647 and 7631 where there are previous buyers.
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 :
Supports in BNF for the current week are at 15160 F followed by the old one at 14830.
Observations in Monday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) 2 way auction with a close at the lows which took the BNF below the 12470 level.
2) Day saw buying efforts made at 15435 and 15460 but seller held up 15500.
Hypothesis for Tuesday :
1) 15470 and 15510 are now the 2 levels the BNF has to overcome with good volumes to gain upside momentum again. Else it may reverse from here towards 15370/ 15330 again. We watch Orderflow at 15470 to see if exitsing longs liquidate and sellers get aggressive at this level.
2) Below 15330 the shorts get very aggressive and a 150 point drop to 15160 will come within the day .
3) The zone above 15540 is poor and if we cross above 15510 then BNF will go back to 15575 and 15640.