The BankNifty had a balanced day on Friday staying between 10820- 10715.
The Initial move down off the open price was bought heavily as the blue in the chart at the lows of the day shows.
Buy the Dip players are present in the markets and should be the basis of the trading Plan.
The vwap of Friday is at 10766 and the BIG DPOC of the buy of friday is at 10746.
As long as Monday and Tuesday trade above 10746, the BNF will remain Positive.
The Profile is also nice and symmetrical forming a D.
A D is a market in Balance and establishing the area as value zone .
This to us means that both buyers and sellers agree to this zone as fair value .
Since the past three days are buiding value in the same region , we are looking for a move out .
When this happens, we will have one party from the balance liquidating the positions and the other adding causing a trending move to happen.
Using 10746 as a reference line, we will play with a slight positive bias ( only till 10746 holds) and the target above will be 10820, 10925 and 11025
If the Breakout happens all 3 levels can come latest by tuesday.
However a move below 10746 will bring 10715/ 10660/ 10610/ and 10520
Roughly 200 points on either side of 10746 and we can add above 10820 or below 10715 to be certain .
The Nifty also traded in a balance and the chart above shows value being accepted higher.
Friday could signal the beginning of a sideways move in NF as we are seeing in the BNF chart.
The Chart above shows the presence of sellers at higher levels.
If NF moves above 6295 near the open or in the IB hour we could see it trade to 6328/ 6336 quickly on short covering.
If that happens then weakness is only if 6294 breaks again.
However signs of a reversal are only if 6257 F breaks during the coming week.
Till 6257- 6294 holds we will stick to a positive bias for the NF.
Levels above 6328/36 are 6362 from Jan series and 6396 from DEC followed by 6525
Levels below 6257 are 6226/ 6192 and finally 6159.
Please mark all the above levels in your charts or enable alerts for them in your trading system.