Here is the OrderFlow from Friday's trading in the NF/ BN.
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On thursday we had a neutral extreme close in the NF and a friday morning open should have been above the closing print for a followup.
This would have been interpreted as bullish.
The market however opened within value and stayed below the spike low. The BankNifty on the other hand was above value and the picture was one of asymmetry.
Generally when I see the NF and BN tugging at opposing ends, it tells me that the market does not have a clear directional bias and needs time to develop. Such situations are best left alone and if trades are taken, they need to be quick and fast for a few points.In the charts above the BN above VAH and NF below VAL was an example of the asymmetry, but I generally extend it to the vwap/ dpoc trades also. A good trade would be when the NF/ Bn play on the same turf.
Subsequently the market broke below IBL in both NF and BN and set the bias to sell.
The day was a double distribution type day with value areas from thursday been rejected strongly. From a swing term bias, now the market needs to stay below 4880 NF to serve as confirmation that the area has been rejected for value.
Lower sides, the May level which produced a bounce equivalent to 4804 in the spot/ 4782 futures would be tested for buyer strength.
The market should get a positive spin trading above POc/ VAH of the previous day only. Range extensions of the IB needs to be monitored to see if the buyer is returning.