Nifty/ BN Weekly View (spot) for 07 Sept- 11 Sept’15

Higher OTF of the multi Month kind we spoke about last week dropped the Nifty to 7655 the lowest of 2015 . July 2014 vwap of 7640 shows 13 months of gains wiped out even as the indices ( Nifty and BankNifty ) are trading close to 2014 POC (charts below) . Multi week charts have been showing weakness below 7940 for 2 weeks  now and have gotten weaker below 7815 also now. Though 7525- 7620 spot is a big support all rises to 7815 and 7945 may be used to build short positions in the weeks to come for 7020  with stops abv 8070 closing basis. 

That is the largish monthly view for the auction at play, but we will try to keep the focus of this post for the coming week .


Last week’s post is up for review here –


In the 2 sessions after expiry the move above 7940 had the potential to close the gap left by the big booming drive from 24/08. However on the 1st the Nifty cleared the short term direction by moving below 7905 and lost 436 points in the week.


Nifty :

weekly profile :



Yearly Profile :




From an Auction Market Theory perspective the POC of the yearly profile of 2014 is at 7620 levels.


Steidlmayer states that the IPM ( Initial Price Movement)  which began from 5930 levels and reached 9100 should not retrace more that 50% of the rise in the period of consolidation for the future. Hence we have big supports at 7520- 7620 according to the principles we follow and should 7520 break the Nifty could drop the next 500 points quickly as also target 6840. 


We noted the heavy short buildup at 7850 and at 7950 levels in our OrderFlow charts and as of friday were looking for signs in the charts which would point to shorts covering their positions.



For the coming week we are seeing major weekly support for the index at 7517 levels and resistance at 7815.


7815 is the weekly POC and if 7815 is crossed the index should be good for 7940 highlighted in various points in previous posts.


Down below 7520 weakness again confirms and a 200 point drop to 7340 should be the next path of the auction in the week.


If 7596 spot holds on Monday near the open we would like to use the dip to play for a visit to 7800 in the early part of the week and let orderflow take it up from there.



BankNifty :

weekly profile :




yearly profile :




The BN is approaching major support at 15500- 15787 from a multi month perspective. This region holds the POC of 2014 and is the consolidation bracket before the sharp rise to 20900 zone.


From a weekly perspective we are looking at 15675 to give support and 16540- 16620 as resistance during the week.


A move above 16620 is likely to drive the index to 17100 whereas a dip below 15670 can create another sharp fall of a 1000 points to 14700.


A close abv 16300 in BN on Monday should point to the beginning of a sideways bracket in BN for a few sessions.


The recent fall in the indices has seen a large short addition in the BankNifty and we believe that these shorts will hold till the index does not move above 16620.