Nifty/ BN Weekly View (spot) for 13 July-17 July’15

Last week we expected a sideways 8370- 8590 kind of week. The index fell 30 short of the previous supply seen around 8590 levels and dipped lower to close the week below 8370. However the dip below 8370 did not meet the expected selling response and the index drifted sideways for the rest of the week . 


Last week’s post can be reviewed here –



Outlook : Moving support for the coming week to 8275 spot. Current volumes do not suggest a break below it. On upsides watch weekly VAH at 8440.





For the week , value was created sideways and the chart above shows that the past 3 days of auction was in the lower tpo zone of the profile dates 29th June weekly.


This TPO count would give us a bias for the coming week at weekly VAH of 8440.


We believe that according to the Auction Market Theory should the index manage a move abv 8440 in the coming week it should move to test the sellers of 20th April at 8620 and the NPOC at 8648 from 17th April.


However staying below VAH the current auction is drifting downwards and likely to meet 8275 in the coming week. The Volumes seen in the past 3 days are not big enough to break 8280 in the coming days and if the volumes stay under 16 L in this range then this support likely to hold.


The Value low for the week gone by is at 8320 spot . Value high as mentioned is at 8440. The vwap of the developing series at 8400. So we can see ample rotation till VAH 8440 is not taken out on upsides.


However below 8275 in the coming week if volumes rise then we can drop to 8150/ 8180.



BankNifty :





In last week’s post we mentioned about cutting down long exposure near 19000 and support for the index at 18350 levels. The Index played a 18980 to 18402 kind of range well within the mentioned levels.


In doing so it outperformed the broader Nifty.



Like the Nifty chart above the BN chart also shows value going sideways on the weekly .


We continue seeing the BN work out of a 19000- 18350 kind of range.Upside if any above 18900 in the coming week will mett heavy sellers at 19140 and 19360 and volumes do not suggest that they can be broken.



On the lower side the auction is slightly weak below 18600 in the coming sessions and likely to test 18400/ 18350 .The value developed during last week is at 18675- 18400.