Tomorrow is RBI day and markets would react violently to the announcement made regardless of what has been factored in.
The BNF is known to start new trends after the RBI policy. Tomorrow the market is non expecting rate cuts but that does not rule out the fact that the governor may choose to surprise the market again.
The point is that one should manage risk properly going into the event.
The Banknifty profile above still shows value being created higher.
The break from the previous balance high of 12456 has been clean and there have been further longs added at 12600.
Today’s session trended lower from open but was met with responsive buying in the closing hour.
The profile chart shows volumes at 12812 and 12874.
Above 12874 vah the BNF should be free to auction higher towards 12940 again. Support for tomorrow is 12812.
The Bias remains up and we should see higher levels of 13150 and 13350 as projected earlier.
Intra day can short below 12810 for 12708 .
The Nifty profile like the BNF above also shows value riding higher
Today’s profile showed a ledge being formed at 6748. Hence a move above 6748 tomorrow re- establishes the long bias in the intra day timeframe and may cause shorts to cover.
The target of the move above 6749 is still at 6785/92.
Weakness created at 6748 gets confirmed tomorrow below day vwap of 6739 and likely to move towards 6707/ 6685/ 6649