The FED event inspired an open lower from balance and a move lower today in both NF and BNF
The move was however slow and arresting and did not inspire confidence as the market traded lower.
Seeing the slow pace of the move which did not attract new sellers, I was inclined for the counter trend move above vwap in the second session, but it was not to be.
We wait to see the outcome for tomorrow.
The BNF stayed below vwap for the most part except that move to 12190 around noon which did not cross the OPEN price.
DPOC shifted lower at close and hence vwap of 12113 is an important point for the seller to defend at the open tomorrow,
The Profile chart shows a filling up of the double distribution profile from 13th and 14th.
The larger trend is balancing in the 3-1-3 we are tracking and expiry looks safe above the single prints of 11820.
The market showed non- acceptance of prices below 12055 today and hence tomorrow a move above 12113 is likely to take the index to 12147/ 12180 and 12315.
Longs can be taken in 50% qty and added above 12148 for the above mentioned targets. SL for tomorrow is the day low of today at 12033 or 12052.
The NF profile is the same fill up action in the double profile of 13th and 14th.
Prices stopped exactly at the 6489 level mentioned in yesterday’s post.
We continue to mark this level as important for the rest of the series as it created a big short covering move last friday ( volume action and inventory change)
The NF will be safe for longs above 6525 tomorrow and target 6549 and 6573/ 6595 with a sl of 6505.
Downsides are the same as in yesterday’s post with weakness opening below 6489 only.