The gap-Up had most traders on the sidelines in the IB as they waited for the market to show it’s hand. If buyers would have rushed in this market could have easily challenged the high volumes at 5180. Instead sellers slowly took over as we saw repeated rejections of vwap during the day. The afternoon selling increased on the 80 % rule which further snowballed once the buyer neat 5166-78 from Friday could not hold the market. The result was a 100 point range day again.
The profile shows a point of control ( Price POC) at 5224 which means that the late afternoon sellers were not getting good value for the sales. Also the Profile is ir-regular again with an anomaly at 5172 and a lower structure which is asymmetrical.
Should there be an up move attempted early tom, then these new sellers of the afternoon would be forced to cover as they have not purchased value.
The market can also attempt to auction in the lower half of today’s range as it builds volume and value.
Today’s High volume trades are at 5245, 5178 and 5157.
Bank Nifty :
The BN auctioned mostly in the value and the range of yesterday. A spike into the close put the lows of the day at 9261. Applying spike rules, we ‘ll note that acceptance below spike lows will be bearish tom .
The 2 day profile is now a stronger b as the market waits for new sellers to take it lower.
9451 off the open, 9338 and 9276 have the highest volumes for the day.
Should it move lower 9075-9149 would be expected to give support.
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