Levels and Plan for 4th Aug

A gap down got closed but the seller took the initiative to sell near the highs and the market closed near it’s lowest point


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) .Targets for the Upmove remain 7900 spot and 8300 in the medium term. Support at 7100 spot.


Short term :


7720 Aug F has stuck buyers and would be the focus of the market’s attention . Seller is driving this leg lower from 25th July and support at 7652 F stands broken. Second line of support is at 7530 F



Observations in Friday’s session :




1) The OrderFlow chart above shows the NF Aug going up above 7720 with limited buying support and seller coming strongly at 7730+


2) The latter part of the fall below 7650 did not have new sellers and the NF might just stage a bounce early on Mon


3) vwap was at 7692


4) Day type was neutral extreme


Hypothesis for Tomorrow 


Hypo1 ) An open above friday lows of 7611 would bring 7652 early on and a cross above 7652 will likely run into sellers again near 7692. 7690- 7710 is the zone of the unfinished auction and OrderFlow should be watched closely here


Hypo2 ) An open below 7610 will drive the market down to 7530.


BankNifty Aug F 




Background/ Previous Auctions :

(no change from previous report)

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 :

Supply coming in the Banknifty repeatedly at 15550- 15640 F.  15080 F is support for the index


Observations in Friday’s session :




1) Like the NF the OrderFlow chart above shows big selling orders coming near 15500 but aggressive sellers missing below 15300


3) vwap of the day was at 15300 and is neutral point as it shows both buyers and sellers active.


Hypothesis for Tomorrow 


Hypo1 ) An open above day low of 15160 will take the BNF upto 15266 F and if 15266 is crossed with good buying volume then 15305 and 15370 are higher targets


Hypo2 ) An open below 15160 would mean a test of 15088 support.