Following yesterday's annihilation and the breakout from a previous balanced area, the sellers did well to take the initiative off the open.
But they were not able to extend the market much below 2IB today. The day low was exactly 2IB, showing once again how market generated information based on price and volume helps in organizing trading activity.
Yesterday's gap and O print stayed and will be a useful reference point for market behavior. It stands at 5482.
Generally a gap which does not fill quickly shows a high directional conviction and high confidence in the direction of the gap.
As we had a balanced profile tomorrow's value areas are important. A break from value, followed by a break of this 2 day range should set the market up for a very good trade with risk- reward easy to manage.
The last break from Value area and previous balance zone on Wednesday gave an easy 100 points yesterday. Tomorrow's move away from value and range should set up an equally good trade.
Trade the market, not your bias of the market.
Bank Nifty :
The BN also had a neutral day which went a long way in rectifying the several anamolies of yesterday's profile.
The seller was in control but could not extend the market below value area low. Once again these levels serve us as reminders to watch the market developing around these zones. They are very good reference points and hold a lot of information .
Tomorrow's profile will be important again for the value areas as we had a normal distribution. Hence any move away will show us that short term interest in the market is changing relative to today's action.
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