Nifty Spot Weekly Profile (03rd to 07th May 2021)
Spot Weekly – 14823 [ 14863 / 14416 ]
Previous week’s report ended with this ‘The weekly profile is a trending one with completely higher Value at 14605-14785-14955 but the close has been in the lower half just above the daily VPOC of 14600 below which the auction remains weak for a probe towards the lower VPOCs of 14399 / 14315 & 14252 in the coming week whereas on the upside, Nifty would need to get above the spike reference of 14672 for a probable test of the higher VPOC of 14904 in the new month’
Nifty opened the week with a big gap down of 150 points and made a look down below previous week’s low but was swiftly rejected as it left a long buying tail in the IB (Initial Balance) from 14512 to 14416 and formed a ‘p’ shape short covering profile for most part of the day before making a spike into the close from 14601 to 14673 and continued this imbalance at open on Tuesday as it made new highs for the week at 14723 but got stalled right at last Friday’s selling extension handle. The auction then reversed the probe for the day to the downside as it not only closed the gap and got into Monday’s Value completing the 80% Rule but went on to spike lower into the close after leaving a fresh extension handle at 14561 as it tagged 14461 testing the initiative buying tail of the week. The 2 days of imbalance on either side then led to a nice Gaussian profile being formed on Wednesday as Nifty negated the extension handle of leaving a prominent POC at 14564 and gave a move away from here on Thursday with a gap up open as it formed a very narrow IB range of just 61 points and made the dreaded C side extension lower which was rejected leading to a Neutral Extreme (NeuX) Up Day as the auction managed to take out last week’s extension handle of 14723. Friday saw a rare follow up to a NeuX profile as the auction made another gap up open but once again was stuck in a very narrow IB range of just 55 points after it hit new highs for the week at 14863 and with the upside looking capped made a probe lower for the first half of the day tagging 14765 in the I period after which it formed yet another Gaussian profile on the daily with a close near the day’s prominent POC of 14830.
The weekly profile was completely inside previous week after the rejection on the downside as it first formed a 3-day composite with the POC at 14564 and gave a move away to the upside on the last 2 days forming higher Value in form of 2 Gaussian profiles but saw contraction in the range indicating poor trade facilitation in this zone. Value for the week was mostly lower at 14530-14560-14690 with that 14560 being an ultra-prominent POC which would act as a magnet in the coming days if Nifty stays below 14830. On the upside, sustaining above 14830 could lead to a test of the daily VPOC of 14904 and the extension handle of 14962 from 29th Apr above which the positional reference of 15052 would come back into play.
Click here to view this week’s auction in Nifty with respect to the previous week on MPLite
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 14830 for a probe to 14904 / 14962 / 15052 / 15120 / 15196 & 15262
B) Accepting below 14820 could lead to a test of 14765 / 14690 / 14638 / 14564 / 14461 & 14399
NF (Weekly Profile)
14869 [ 14908 / 14462 ]
NF continued last Friday’s imbalance with a big gap down of 150 points and continued to probe lower in the ‘A’ period but was swiftly rejected from below previous week’s lows as it left a long buying tail in the IB after which it remained inside previous week’s profile filling up the low volume zone as it formed a 3-day composite with a prominent POC at 14612 and moved away on the last 2 days forming higher Value on the daily and tagging the daily VPOC of 14811 with a gap up on Friday but stalled right below the weekly HVN of 14924 as it build volumes around 14865 and closed the week with a Gaussian profile on the daily with one of the narrowest range of just 105 points. The weekly profile was completely inside previous week with the daily range contracting on all 5 days with overlapping to lower Value at 14567-14609-14749 which would be the reference for the downside in the coming week if rhe auction sustains below 14865 whereas on the upside, NF would need fresh demand above 14924 for the upside probe of last 2 days to continue.
BankNifty Spot Weekly Profile (03rd to 07th May 2021)
Spot Weekly – 32904 [ 33259 / 31906 ]
Previous week’s report ended with this ‘The weekly profile is an elongated one with completely higher Value at 32700-33660-33840 with a close well below the prominent POC at 33660 which will be the important reference on the upside for the coming week whereas on the downside, BankNifty would remain weak below 32660 for a probe towards 32485 & 31949′
BankNifty opened with a big gap down and broke below previous week’s low as it tagged the 23rd Apr VPOC of 31949 while making a low of 31906 but confirmed a Failed Auction (FA) there as it started the week with a NeuX Day Up which was also a Gaussian profile. The auction continued this imbalance giving a rare follow up to NeuX on Tuesday as it completed the 1 ATR objective of 32733 from the FA and made multiple REs to the upside but formed similar highs of 33011 & 33009 indicating exhaustion which in turn triggered a long liquidation move lower into the close as BankNifty not only closed the gap but went on to get into previous day’s balanced profile and made a low of 32191 leaving the second consecutive NeuX profile of the week. Wednesday saw the first OAIR (Open Auction In Range) start in 6 days with consolidation happpening above the NeuX zone of 32379 to 32191 in the ‘A’ period but saw a quick swipe down in the ‘B’ period to 32068 which was swiftly rejected as the auction left a long buying tail from 32396 to 32068 in the IB and went on to form a ‘p’ shape profile for the day with a prominent POC at 32592. BankNifty then made a higher open on Thursday but failed to take out the poor highs of 33011 as it stalled at 32956 in the A period and made a slow probe lower for the day for the first 4 periods as it tagged the prominent POC of 32592 and took support there leaving a narrow range balanced profile for the day. Friday then saw the 4th consecutive higher open of the week as the auction finally managed to negate the poor highs and tagged 33259 in the ‘A’ period but once again could not extend on the upside and made a slow probe lower leaving yet another narrow range day and a 3-1-3 profile with a close right at the prominent POC of 32910.
The week started with a daily FA at 31906 after which it has formed a 4-day composite with Value at 32559-32813-32954 with the weekly profile itself being a well-balanced one in a relatively small range of 1353 points with overlapping to lower Value at 32370-32730-32970 with a good chance of giving a trending move in the coming week with the FA of 33455 & the weekly VPOC of 33660 as immediate references on the upside.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 32954 for a rise to 33076 / 33189 / 33306 / 33455 / 33660 / 33849 & 33958
B) Accepting below 32852, the auction could test 32730 / 32559 / 32370 / 32260 / 32068 / 31906 & 31833
Extended Weekly Hypos
C) Above 33958, can expect higher levels of 34136 / 34230 / 34405 / 34513 / 34640 / 34745 / 34875 & 35014
D) Below 31833, the auction could fall to 31722 / 31545 / 31411 / 31308 / 31216 / 31074 / 30955 & 307866
BNF (Weekly Profile)
33038 [ 33367 / 31625 ]
BNF opened the week with a big gap down on Monday and even made a freak tick of 31625 as it tagged the weekly VPOC of 31755 but was swiftly rejected as it left an initiative buying tail and formed a ‘p’ shape profile for the day with a spike close and continued this imbalance for the first half on Tuesday where it tagged the weekly HVN of 33198 but left similar highs signalling drying up of the demand which led to a downside probe as the auction spiked lower into the close and tagged 32316. Wednesday saw BNF not only testing this spike zone but making new lows of 32135 in the ‘A’ period but once again it left an initiative buying tail in the IB indicating the return of buyers as the auction made a slow trending mve higher till Friday open as it repaired the poor highs and tagged 33367 stalling just below the VPOC of 33400 which led to a profit booking move lower for the rest of the day resulting in a low of 32862 before closing at 33038. The weekly profile represents a compostite ‘p’ shape with Value being overlapping to lower at 32520-32955-33150 and the prominent POC at 32955 would be the important reference for the coming week for a move away on good volumes.