The BankNifty had a double distribution trend day today .
The break from the inside day pattern seen on 25- 28th FEB is still continuing ad we see one party giving up and the other adding up positions.
There have been now 3 back to back trending days since the failed move lower on 3rd march and the launch higher the next day
Today’s profile is a continuation of yesterday’s trend up after a base was formed in the top 2nd and 3rd SD of Tuesday’s profile.
As long as 11051 holds tomorrow the profile will still have a bullish bias.
If 11051 breaks then BNF will dip to 10977 where it should find some positive buying support.
If however 10977 breaks then the upward momentum will be lost and a bigger retrace of the move to 10878/ 10837 will begin.
On the higher side staying above 11051 the bias is still up and the targets are 11135 and 11282.
Unlike the BNF, the NF went sideways today.
The Profile started off as an ORR but the love to supports near 6308 was quickly bought and the profile had a higher close.
The net result shows the presence of both buyers and sellers in the NF.
What should follow from this profile is a neutral day in most cases.
So for tomorrow if one is sitting on profits in intra day positions, he should watch vwap and trail or close positions in NF around there
This type of a profile still suggests a move upwards to 6416/ 6420 with stops kept near 6335 on a move ONLY above 6362 in intra day action.
However the possibility of a down move should never be discounted and the bias is down below 6335 at the open for 6306/ 6292 and 6252.
The trend may be volatile tomorrow in NF and watch for the possibility of Neutral day through IB levels and vwap.