Trading Room : levels and plan for 7th July

We saw a neutral extreme profile on Friday  as the market explored both sides of the value area created on Wed and Thurs but the close was dominated by buyers.

 

Nifty July F :

 

Nf_Compo1

 

Background / Previous Auctions :

 

Medium Term :

The Friday May 16th range of 7639- 7182 looks like a  completed bell curve now as the market has successfully auctioned out the entire range building volume.

 

The Updated bell of the July F is shown here : http://prntscr.com/3wrmyl

 

Short term :

Trend up from 7555 JulyF on 30th June. 1st support for this trend up for the current week lies at 7717 just below the huge buying zone of last week and then at 7647.

Upper side imbalance seen extending to 7837 F.

 

 

Observations in Friday’s session :

 

1) A neutral extreme profile with a buyer in control as the market spiked into the close.

 

2) Strong responsive buying seen from 7676 as the gap from 1st july closed

 

3) Anomaly detected at 7764 which would mean a visit lower before we go higher

 

Hypothesis for Monday :

 

7791 is the reference line for Monday

 

1) Since we had a neutral extreme , the buyer has to open the market above the previous close. If we do open above 7791 then the imbalance target of 7824/ 7837 is the first objective. Sl for the view would be 10 points below PDH.

 

2) If we do open below 7791 then the market should run down to secure the anomaly at 7764. The region of 7755 holds late buying interest and is the destination for the move below 7791. The 7754 zone is important support and we look for buyers to respond from there

 

3) If 7754 fails then the market heads lower to 7738 and 7720.

 

BankNifty July F :

 

Bnf__Compo

 

Background/ Previous Auctions :

Medium Term :

Friday May16th  huge range of 15888- 14418 June F provides a background to the entire moves we may see in the BNF for some time.

 

The updated auction of the JulyF is here : http://prntscr.com/3wrs9g

 

Short Term :

Short term balance established last week at 15470- 15660. The imbalance target is 15850 as long as we stay above 15650.

 

Observations in Friday’s session :

 

1) Neutral extreme day with buyers dominating at the close and closing the instrument above 2 day resistance of 15650

 

2) Anomaly at 15590

 

3) 15392 shows buying response

 

Hypothesis for Monday :

 

reference line for the day is at 15715

 

1) If we open above 15715 then the BNF should head towards imbalance target of 15850

 

2) If however the open is below 15715 then anomaly repair should bring the market to test 15614/ 15590 again where we look for buyers to respond.

 

3) A failure at 15590 can drive the market down to 15551/ 15516.