Here is a chart of the Nifty profile showing two composite profiles from the week 12/12 to 15/12 and week from 19/12 to 20/12.
Both of these composites were balances and will have important implications going forward.
The Profile dated 16/12 shows a move to the top of the balanced profile which failed and resulted in a [panic bottom, in the next 2 sessions at 4537. It is important to note that again we saw evidence of a failed move producing a fast move in the opposite direction.
As we say at Vtrender often- from Failed moves come fast moves .
This profile will be an important reference point for the market’s behavior now.
Coming to the other balanced profile in the chart on 19/12 and 20/12 we are witness to a move which has created value higher. Also note the Buying efforts late on Friday and early this morning in the form of the single prints. The migration of value higher and the single prints at the base of the profile are pointing to us that buyers continue to dominate the landscape in the short term.
We would have to see if sellers come back into the equation. This will be visible from a value which starts going sideways to down,, single prints at the top of the profile and a close below Value area low.
Till then it is safe to assume that buyers control the short term and any trades taken on the opposite side will be highly speculative.