The size of the buyer reaction was 5131 to 5175 off the open or 44 points. The actual buying volumes were seen at 5139 and the size of the reaction from there to 5175 has been another 35 points, consistent with the buying we saw from 5166 to 5204 and a few times earlier.
The sell side reaction was again 100 points straight down again consistent with yesterday’s sell off from the open price which was also 100 points.Today’s selling began near 5163 NF.
What does this tell us?- that the market is driven strongly be sellers or the initiative activity is on the sell side in a 1: 3 ratio currently.If the buyer has to gain an upper hand, we will have to see reactions of more than 35 points one way.
The profile itself shows another incomplete lower half (like yesterday”s profile)
Anomalies are seen at 5112 and 5127 in the profile chart.
Lower down 5049 and 4974 stand out as visible supports. Looking at the MO posted by RM, it does not make sense to attempt new shorts here for a swing trader.
The first thing to look out for as a buyer besides the above mentioned reaction of 35 points would be a range extension on the upper side.This will establish firmly the buyers are buying into the market again.This action should be followed by consecutive closes above the Value area high.
Bank Nifty :
The BankNifty broke out of the 2 day B shaped pattern by moving lower into the close.
The shape of the profile today is in the shape of a ” P”, which means that longs moved out of the system.
Large volumes were seen at 9065 near the close at 9191.
Support below is at 8827 and 8694.
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