The dec series finished with a vwap of 7804 and the short covering seen in the last 10 days of the series would keep the immediate bias up above 7800 in the early part of the new series. In the weekly there is immediate support near 7925 above which the bulls should feel comfortable early in the week. Let’s look at what’s in store in the coming week
In the coming week, we are looking for volume confirmation above 8000 in the Nifty to signal a move higher. There are sellers in the profile dated 2/12 from last month who may look to add or renew their sell-side bias around the same point. However, there is no confirmation of weakness price wise till we drop below 7920 spot. If we do that then we may overturn a 3-week long bias and create a retest of the 7800 level. It’s been a low volume rise in the past 15 days and current volumes do not suggest that we may break above 8075 spot in the coming week.
The BN put in a nice gaussian curve in the week gone by.
We have an easy reference point at last week’s highs which also coincides with the weekly gap in the profile dated 30/11 to watch for buy side volumes. A long trade above that point should take it through the lower distribution of the profile dated 30/11 and onto 17290.Below 16930 POC however our bias in the coming week is down and we look for a retest of vwap December near 16840 which if not supported can create a further drop to 16600- 16650.
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