In our last update on the Nifty future we had noted a balance developing in the index and identified potential supports which were at the base of the single prints and the HVN of the smaller balance below.
Here's an updated chart, but we will look at spot prices instead today.
Nifty spot :
The chart above shows the balance developing from the 2nd of Jan and Fridays' profile shown separately to the right.
Today's developing profile is on the extreme right.
On Friday we identified single prints at the top of the profile which indicated a rejection of higher prices at the open. The move was lower through the day.
The POC of that profile is at 5981 spot coinciding with the value area of the composite.
In the auction of today and later in the week, this 5981 will be the minimum level that has to be scaled for upsides or even the state of balance continuing.
Lower supports continue to be in the 5930- 5937 spot zone a break of which should see 5902 quickly.
Overall the market is trying to break from the balance zone, yet not successful with a break of Fridays' lows confirming the development.
Auction is at an interesting place for the series.