The “toehold” mentioned in the last update managed to pull the index down on Monday and buyers were called to defend the “7716-7728” mentioned in the last report
Nifty July F :
Background / Previous Auctions :
(no change from last report)
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 upto 8100 in index F .
Short term :
Buyers seen holding up the index F at 7466 and 7538 and at 7628 .. Projected imbalance target met ( 7832 spot / high of 7839 F .1st line of support this week at 7720F.
Observations in Monday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) Sellers came in NF at 7790 (check chart) but buyers came to defend the 7745 and 7720 zone
2) vwap of the day dropped to 7756
3) the 7756- 7770 zone (7764 F) shows buyers unable to push the auction higher
Hypothesis for Tomorrow
Hypo1) We keep an eye out for OrderFlow around the 7755- 7770 zone again. If we stay above 7770 the NF goes back to 7795 again and below 7755 it is back to 7734/ 7720
BankNifty F :
Background/ Previous Auctions :
(no change from previous report)
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 15270 F followed by the old one at 14830. Resistance at 15470- 15510 and then 15640.
Observations in Monday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) The BNF chart above shows sellers coming in the index in the second session
2) Support near 15270 broke but BNF came back to close around there.
3) Sellers seen coming at lower levels in BNF on friday.
4) BNF resistance for wednesday is now at 15320 and as tweeted on Monday the 15350 zone is showing sellers getting active.
Hypothesis for Tomorrow
Hypo 1) 15325 is resistance in BNF for wednesday and if OrderFlow shows sellers getting active again then BNF will agaain fall to 15250 and below that 15170 which are the lows from 17/7
Hypo2 ) Shorts begin to feel the pressure above 15330 and BNF can run hard to 15405 again. Longs taken for 15405 will have stops below 15285.