After a normal day yesterday, the markets put in a neutral day today with the longer time frame players making their presence felt.
The difference between the two days, is that in a normal day the longer time frame player is absent and prices usually drift like we saw yesterday.
But today after the small initiative selling at the open which hastened in the afternoon, we saw responsive buyers appear around the Previous POC at 5970 regions to take the market up aggressively.
So in the end , value was created in the same zone as yesterday.
The type of day tells us that we are going from an aggressively long bias to a neutral one now without any real bias to the start of next week’s trading. In other words, the market has gone from imbalance to balance and is in step 2 of our 3 step Market Profile process.
The bank Nifty had the aggressive seller show up more strongly at the open and the responsive buying emerged at 12370 levels to bring the market back into the IB.
12470-12540 is a single print selling tail and 12540 remains a poor trade facilitation zone.
On the weekly Timeframe the Nifty did well to erase last week’s values.
Value was established sideways on the weekly, which confirms that the downtrend has been halted temporarily.
For all you swing traders 6039-6010-5839 are the weekly value area with 5939 as the developing weekly VWAP. Longs are good above 5939 NF.
The bank Nifty weekly chart confirms what Girish has been saying all along in his open interest analysis every morning, that this rise in the bank Nifty has been through short covering more than anything else.
12384-11839-11752 are the weekly values and the vwap at 12185 will provide a support to the market next week.
Have a pleasant weekend.