Last week despite a gap up Open on Monday the Nifty failed to get new buyers above 2015 POC of 8330, setting up a long liquidation process which got compounded with expiry trades and the Nifty closed near the lowest point of the week. The expected expiry around 8440 did not materialise and instead the Nifty closed the October series at vwap of 8111.The Nov candle shows a short buildup from 8260 spot levels and even as 7950 remains an important support for the next 2 weeks, all rises to 8260 may attract additional selling.
Last week’s bias went off when the 2 major supports at 8260 and 8220 broke. Last week’s report can be assessed here: http://vtrender.com/nifty-bn-weekly-view-spot-for-26-oct-30-oct15/
Nifty TPO chart:
On Monday, we had a gap up, but saw an open drive with excess at the top which ensured Monday closed at the lows and near our weekly support of 8260. Tuesday was a gap below support 1 and probed support 2 of 8220. Wednesday was a normal variation day. Thursday saw more selling from 8172 spot and Friday tested the selling at the open and closed lower in a neutral extreme.
The auction is driving value lower for 5 full sessions and has immediate support at 8004 and at 7956 lower.
Bears are in control of the auction below 8112 and likely to drive the index lower towards 7950 during the week. Upsides during the week are likely to run into selling again at 8155- 8175 and if crossed at 8262 during the week.
BankNifty TPO chart:
In BNF, we saw the same structure as the NF from Monday to Friday. However, Thursday and Friday were inside days and forming a balance to make it a DD week in BN.
The Nov BNF charts show aggressive shorting from 17930 F levels.
The BN spot has support at 17050 in the week to come and at 16840. However, it may run into a fresh round of selling at 17600 during the week.
17900- 17950 is the second layer of resistance above.
We have used quantitative analysis and the principles of Auction market Theory to arrive at our levels. For running updates of the daily and weekly moves and to join our community visit – Vtrender Trading Room