Last week we waited for a dip using 7780 spot as a reference point. On the trend day of Tuesday, the market stopped at 7780 at the close. However, Wednesday’s gap down failed to show sellers below 7780 leading to a 100 point rise to 7883 the same session. However with a series settlement, the expected upmove did not take off, as the Nifty stayed near the Sept vwap. This week we play for that move back to 8050 using 7770 again as a reference point.
Last week’s post is up for review here- http://vtrender.com/nifty-bn-weekly-view-spot-for-21-sept-24-sept15/
Nifty spot weekly TPO:
The highlight of the week gone by was tuesday’s big trend day and the settlement near September vwap of 7832. During the week, we had 2 gap downs on Mon and Wed which failed to show new selling.
The weekly TPO chart above still shows a sideways developing value. The composite POC of the above weekly merged is at 7815 with a vwap of 7832.
We will like to keep a positive bias above this 7815- 7832 zone with stops below 7770 during the week again for an initial 7970 and 8052 to 8170 during the week.
7723 is the second level of support for the index below 7770 and once below 7723 the index can drop to 7520 again.
BankNifty weekly TPO chart:
We see the same sideways pattern in the BankNifty chart. Most of the poor trade facilitation ( single prints middle of previous week profile) near 17000- 17300 got repaired in the week gone by.
The Profile of Wednesday shows us an excess low at 16758. Sept series vwap of BN is also at 16774. We will be leaning on these levels to support this index on any major drops in a week which has an RBI event in it.
up above the supply will be seen at 17495 and at 17804 if that is crossed.
Support below 16758 will be seen at 16588 and 16151.
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