The open drive in the BN at the open met with renewed selling at the announcement of the rate decision by the Governor today.
After the inflation number had moved up and the industrial production looking good, one was thinking that the time may not be right for the RBI to cut rates. We felt as much in this short post made yesterday
The chart above shows that all anticipatory longs created yesterday and the day before were liquidated quickly and the market returned to auction in the zone it had been on 12th March.
In the trading room, we got our first inkling of the impending sell when OrdeFlow gave us a sell signal at 9.23 am this morning with the price at 10903.
However during intra day it pays to watch closely the vwap and dpoc as they define the dividing line between buyers and sellers on any given day.
Once vwap and dpoc were broken quickly, there was no looking back and sellers remained in control till the close when we saw good volumes coming near 10610-10660.
Tomorrow session will be completely removed from today's and there can be large inventory changes for the current series in tomorrow's trading.
It becomes a lot more easier when you understand the movement of price with the tools from Market profile.