We have been speaking about knowing the series vwap for quite some time on our blog and once more the importance of our methods was highlighted in a volatile RBI day trade when the Nifty came and touched the series vwap of July at 8448 and bounced higher to close the week near 8564. We maintain our positive view above 8446 July vwap.
Last week’s view “ For the week we see 8490- 8610 kind of an oscillating range with a break above 8610 giving an 100 point move to8704 and a move below 8490 finding support at 8455 and 8420” . The post link for review is at : http://vtrender.com/nifty-bn-weekly-view-spot-for-03-aug-07-aug15/.
The week high- low was 8448- 8606.
Nifty :
The coming week in the Nifty also looks rangebound between a larger 8640- 8425 range.
Early in the week the longs of last week will feel the pressure if 8535 VAL breaks,
8505 would be our KRA on the weekly and a break of this pivot should take the index below last week’s lows and to the 8425 support band when we watch for buyers in the OrderFlow charts.
On upsides we watch for seller at 8640- 8664 band. A cross of this band on good buying volumes can put the index at 8756.
BankNifty :
Last week BN formed a beautiful bell shaped curve and closed exactly at the weekly POC. You can’t find a more accurate picture of a bell curve than last week’s BN profile.
In the week gone by the BN took out the resistance and FA from the previous week but could not manage a successful auction above 19070 after 2 attempts. Against the bell curve we are also trading the 18200- 19300 zone from 4 months .
18800 is the immediate support in the BN for the coming week. The structure below 18800 is very poor and a quick fast rush to 18430 is a high probability trade lower in the week which also has an extremely good risk reward being a breakout from balance according to the principles of Auction market Theory.
Up above we again look for 19070 from last week to sustain for that move to test the supply at 19330.