Profile charts for Mon- 14/11

These charts were posted on vtrender-2 over the weekend.

Nifty :

Nifty Mp5 Profile Charts For Mon- 14/11

The above is the composite profile we were watching at the beginning of the week. When it was fully developed it moved towards the lower side indicating that sellers have more control on short term action than buyers.

Generally in cases of a break out or break down, there is a pull back to retest the broken region. We may thus witness a move to test for old business at the lower value value of the profile or even the Point of Control. Bear in mind though, that on the test of the lower side, the 80 % value area rule may kick in which may force weak shorts to cover. Such a move beyond the POC may take the market to even 5350 to complete the 80 % rule.

The Bigger possibility may be a strong rejection by the Big sellers near the 5180-5200 zone at the center of the profile.

The chart below is Friday’s auction :

Nifty Mp23 Profile Charts For Mon- 14/11
Two things stand out in this chart.

1) Friday’s profile was Balanced. It means that sellers and buyers showed equal strength. One possibility remains that some sellers may have covered a part of their shorts in Friday’s action.

2) The profile above the balanced zone shows anomalies at 5253 and 5277. Anomalies are structural defects and often the markets repairs them by paying a revisit at that zone.Also the Market left a small gap between 5216 and 5226 and as we all know most small gaps tend to be covered subsequently..