We have had a tiring three days of trading in the Nifty futures, with the market refusing to move beyond an established daily range and two sided movements in the markets.
Indeed strong initiative activity has been met by strong responsive activity on both sides yesterday and today.So whilst yesterday’s initiative seller was met by responsive buyers, today’s initiative buying has been downed by responsive selling.
If we merge all the three profiles, we get a sense of where the distribution has been happening.
Incidentally we are still around the 5900 spot level we spoke about two days earlier
That’s the power of the point of control . It tends to attract all prices to itself.
But let’s look a little beyond the POC and try to understand what the chart would be doing in the next two days.Whilst it’s always hazardous to guess a break out of a balance zone, a closer look inside the profile shows range extensions on the south side, one unsuccessful and another successful ( today’s profile) which would try to indicate a shift in the market sentiment at current levels.Clearly the smart money seems to be moving out at higher levels.
Let’s also look at this next chart :
It’s a 5 day chart for the entire distribution above 5830 and does seem to indicate that there needs to be more work done at 5860 levels.If 5860 does not hold then the market will rush down to 5815-20 from 31/3.
If I am wrong about this, then NF should stabilise above 5940 tomorrow and go on to meet 5976 and 6015.
It’s a balance profile after 3 days, which actually is a 50-50 , but internals say that sellers have an edge.