Nifty/ BN Weekly View (spot) for 19 Oct- 23 Oct’15

From Last week’s comments – “ For the week to come our first line of support for the Nifty spot will be 8084 levels. We saw strong buying come from these levels on our order flow charts and we believe the index will be supported higher on a price visit back to this zone. This 8084 finds a mention in last week’s report as well.”

 

The Nifty closed the week at the highest point 8238 levels as buyers were prompt. ( We saw a huge program buy at 8108 F twice) 

Last week’s report can be reviewed here- http://vtrender.com/nifty-bn-weekly-view-spot-for-12-oct-16-oct15/

 

The time frame for this report is weekly and levels we mention need to be seen in that timeframe only.

 

Nifty TPO chart:

 

N_Weekly

 

 

In last week’s report, we did mention that the close up on Friday was not a good buy point and the Nifty had to move lower to attract buying. Monday was a trend down and by Tuesday we were at weekly support zone, where we saw a sharp 50 point rise the same day. Wednesday probed that support, Thursday was a gap up fuelled by high volume buying near the Open, Friday probed that buying and shot up 100 points from that zone.

 

The chart above shows the Nifty operating the same range as last week, but above the composite of September. 7831 is the vwap of September from where we saw buying emerge and 8287, the vwap of August series.

 

For the coming week, we see resistance in the Nifty at this 8287- 8295 band. Support is at 8160- 8186 which has the dpoc of the week gone by.

 

The second cluster of support is at 8130 spot.As long as the index stays above 8185 in the coming week shorts would feel the pressure and an expiry close to 8450 is a possibility.

 

For the weekly though any upsides seen above 8295 may get curtailed at 8353 even 8396 on the higher side.

 

Again our belief at Vtrender is not just about giving you levels, but a time frame too. As mentioned above all levels valid for coming week only.

 

Banknifty TPO chart:

 

Bn_Weekly

 

Last week on BN we said, ” Supply overhead will be at 17770 levels and if crossed then BN can target 18050 and 18150 quickly.”

 

In about 70 minutes on Friday the BN had done about 180 points above the 17770 zone. In the week to come, we look forward to a strong retest of this broken 17770 zone. 17770 will be our primary support in the coming week. The second layer of support will be ay 17646. If these 2 levels do not hold the BN risks a drop to 17150 levels quickly on the failed attempt, as the saying goes – from failed moves come fast moves.

 

Up above 18050- 18085 is the resistance zone for the week followed by 18270.

 

As with 8084 in the Nifty pointed out in the past 3 weeks, when you trade with correct levels, they get tested back and forth and provide vital cues to the nature of the auction taking place.

The business of peddling levels in the name of technical analysis is very old and too many people throw levels randomly around creating confusion, but the truest levels will be the ones which stand the test of volume.

 

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