We were trading the January Future yesterday, but for tomorrow’s action we’ll shift focus to the Feb futures.
There’s a reason. At all times in the market we are looking for the presence of a longer term player who has a view of the market of more than one day. That person will be trading the feb tomorrow and it will be left to the day time frame to negotiate the Jan particularly from noon.Also we are “volume people” and there will be more volumes in the feb than in Jan tomorrow.
Here’s a chart of Feb Action :
Looking at this chart I only remember one saying which I learn’t years back : ” From failed moves come fast moves”.
As the Nifty opened above the previous excess zone of 5775 ( 5750 in Jan future) and buyers made a conscious attempt to stay above that level, the news flow in the afternoon was responsible to create a small selling tail at the top and a breakdown below value and Monday’s open price added to the downside momentum before the High Volume Node from 20th Jan ( pink dashed line) arrested the downtrend.
The market continues to be in balance in the weekly time frame and only a break down below feb level of 5640 will invite fresh selling.
Bank Nifty :
In my last post on Bank Nifty I had stressed on the importance of the 10930 zone as well as the auction of the 14th of jan as a defining point for the Bank Nifty.
Have a look at what happened since :
The break above brought 11290, but the subsequent sell-off has brought us back to last friday’s closing level exactly.
The profiles are each marked in the rectangles alongside.
From the current closing level, 10973 on the upside and 10873 on the downside should be watched for direction.