Dip buyers again at Vpoc today ensured a higher close for the Nifty today.From 14th July we have seen a non stop climb in value from 7445.
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. The projected range expansion is at 8100 in index F .
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. Value seen going higher in the above chart. Projected imbalance above the 7765 level is at 7851 F.
Observations in Wednesday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) The Open saw sellers but buyers responded lower at yesterday’s POC
2) The Movement and Range was in the profile of 7/7 which was the large big balance zone before the move to 7445.
3) We saw the sellers getting active again today as the auction became two time frame.
Hypothesis for Thursday :
1) Hypo1 – The auction of today looked incomplete and we should ideally see the NF auction more in today’s range in next few sessions. 7812 to 7745 is the range and breakouts either side should be monitored for changes in the Orderflow pattern. The plan would be to sell around 7810+ and buy dips near 7750 minus with protective stops either side.
2) Hypo2 : a cross of 7815 is a buy with sl at 7795 for 7851/ 7869.
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 :
Supports in BNF for the current week are at 15160 F followed by the old one at 14830. Resistance at 15470- 15510 and then 15640.
Observations in Wednesday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Hypo1 played out in the morning session and the BNF stepped into sellers at 15640. Thereafter it was one way down
2) vwap of the day was at 15520.
Hypothesis for Thursday :
Hypo1) 15470- 15510 are again the big reference levels in BNF for tomorrow and should we have an open above 15510 then BNF can do 15560 and go check for old business at 15640 again.
Hypo2 ) Below 15470 the BNF will go to 15390 and 15330 again.