The weekly auction of 10th to 14th September played out exactly as the auction from 03rd to 7th of September. There was a drop in the first 2 and a half sessions of the week and a recovery in the last session. Friday was again an upmove day and with a close around marginally lower than the 11640 seen last  Friday. The August series vwap at 11444 broke during the week and as expected on the principles of Auction Market Theory, the Aug lows were tested. The lows measured 11250 spot against Aug lows of 11235. For the 2 weekly…

Last week’s sharp downtrend in the Nifty and especially the banknifty caught many traders including us off guard. The Nifty worked a range of an extremely high 338 points which is twice the average it does on a weekly. The BN worked a range of 1060 points. The vix hit a high of 14 but was unable to make a decisive move above 14.2 levels. The elevated vix levels and the higher ranges promise more volatility in the holiday-shortened week ahead. If vix manages a move past 14.2 in the week it would bring substantial more pressure on the markets.…

The series of August which concluded on Friday was traded with a vwap of 11444 and highest volume during the series came at 11480. The Nifty trended up through the August series with buyers in total control of the auction and hence the vwap at 11444 will serve as an important pivot in the coming few months.   The BN traded August with a vwap of 27923 and highest volume was traded at 28280. Viewed against the uptrending profile of the Nifty, the Bank index was rangebound and the last 4 weeks were spent in the same range forming a…

Last week in the Nifty and the BankNifty showed a sideways profile with value going sideways confirming the presence of a bracket or a balance as we call in MarketProfile. The composite POC for this balance is around 11400 and we expect further rotations around this pivot for the week ahead.   The higher levels visualized are near 11550 if that pivot is held. Dips to 11300 would remain buys. We maintain what we said in the weekly update at the start of this new series of August – //As we move deep into the first week of the new series…

July settlement was done on Thursday with aa vwap of 10900 and a POC at 10960.  The BankNifty closed the July series with a vwap of 26738 and POC of 26910.   This is market generated information and allows us a glimpse of where the money and positions were created on a monthly scale and more.   The series vwap is expected to be a support into August series and dips to these numbers are Buy points.   As we move deep into the first week of the new series of August it would remain a Buy the Dips environment.…