Nifty Spot Weekly Profile (22nd July to 26th July)
11284 [ 11398 / 11210 ]
Last week’s report ended with this ‘though the PLR is likely to remain down for a test of the 1ATR move of 11336 from that negated FA of 11461‘
Nifty opened at 11393 on Monday with a small gap down and got rejected just below the previous week low of 11399 as it made a high of 11398 reinforcing that the direction is firmly to the downside and it probed lower tagging that 1 ATR of 11336 in the first 15 minutes itself. The auction went on to make a low of 11301 in the ‘A’ period on Monday and stayed in this range of 97 points till close on Tuesday where it got rejected yet again at 11398 in the attempt to probe higher leaving poor highs on the weekly profile along with a 2-day balance. Nifty then moved away from this balance on Wednesday with an Open Rejection Reverse lower as it made new lows for the week & went on to tag the weekly vPOC of 11254 while making a low of 11230 for the day. Thursday saw a similar kind of action as Tuesday as for the second time in the week Nifty made an inside bar on daily after getting rejected at the PDH (Previous Day High) of 11360 as it made a marginally higher high of 11361 which indicated that the probe to the downside is still not complete. The auction continued the probe downside at open as it made new lows for the week at 11210 completing the 2 ATR move down from the negated FA of 11461 in the ‘A’ period after which it probed higher to tag 11310 completing a 3-day balance to close the week at 11284. On the weekly, Nifty has made a DD (Double Distribution) down kind of a profile with 2 balances although there are no singles separating them but it has left 2 HVNs at 11355 & 11276 in both the balances which would be the levels to watch in the coming week and there is good chance that the auction could make a balance between these 2 HVNs before giving a move away. The weekly Value is 11248-11276-11318.
Weekly Hypos for Nifty (Spot):
A) Nifty needs to get above 11310-320 for a move to 11343-355 & 11399
B) Immediate support is at 11276 below which the auction fall to 11241-236 & 11185-180
C) Above 11399, Nifty can probe higher to 11419 & 11445-450
D) Below 11180 lower levels of 11145-131 & 11108 could come into play
E) If 11450 is taken out & sustained, Nifty can have a fresh leg up to 11480-503 & 11535
F) Break of 11108 could bring lower levels of 11089-078 / 11055-49 & 11030-025
NF (Weekly Profile)
11327 [ 11447 / 11247 ]
NF opened weak on Monday resisting exactly at the previous week’s low of 11444 at open and continued to move away from the previous 2 week’s composite which it began last Friday as it made a low of 11356. The auction then made a balance for most part of the day on Tuesday before giving a spike to the upside in the afternoon as it attempted to get into the previous week’s range but was rejected leaving a new high of 11447 for the week to indicate that upside was limited. NF then gave a move lower at open on Wednesday confirming a weekly FA (Failed Auction) at 11447 and went on to make lows of 11266 leaving a ‘b’ profile for the day which indicated long liquidation with no fresh supply coming in. Thursday was an inside bar with almost similar highs at 11386 & matching lows at 11280 as the auction looked for fresh direction and Friday saw NF making new lows for the week at 11247 in the opening 10 minutes but again there was no new supply seen which left a small buying tail at lows in the IB (Initial Balance) after which the auction probed higher making a high of 11345 and in the process completing a 3-day balance. The weekly profile resembles a DD (Double Distribution) with the HVN of the higher distribution at 11400 & that of the lower one at 11319 which will be the levels to watch in the coming week as NF could form a balance between them before giving a move away. The PLR (Path of Least Resistance) remains on the downside towards the 1 ATR objective of 11181 from this week’s FA if the auction stays below 11319. This week’s Value is 11268-11319-11358.
BankNifty Spot Weekly Profile (22nd July to 26th July)
29325 [ 29635 / 28871 ]
BankNifty followed up on the Trend Day down of last Friday with a gap down open of more than 150 points on Monday after which it continued to probe lower not only closing the big gap of 17th May (30174 to 29450) but in the process it left a selling tail from 29457 to 29770 indicating that the probe lower it still not complete. The auction continued to trend down on Tuesday & Wednesday making lower lows of 29078 & 28871 as it tagged the weekly vPOC of 28955 and closed around the same on Wednesday indicating short term support. BankNifty then made an inside bar on Thursday confirming that the downside probe could be over for the short term. Friday then saw initiative buying activity at open after a long time in BankNifty as the auction left a buying tail in the IB from 29059 to 28994 and went on to make an range extension to the upside leaving an extension handle at 29188 to probe higher as it made highs of 29364 before closing the week at 29325 leaving a long liquidation ‘b’ shape profile for the week with the POC at 29230 which will be the first major support in the coming week. On the upside, BankNifty will need to find acceptance above 29460 for a move towards the 29700-770 zone. The weekly Value is 29030-29230-29300
Weekly Hypos for BankNifty (Spot):
A) BankNifty needs to sustain above 29365 for a move to 29415-457 / 29500 & 29585
B) Immediate support is at 29291 below which the auction can test 29241-230 / 29188-156 & 29071-047
C) Above 29585, BankNifty can probe higher to 29635-670 / 29757-770 & 29836-845
D) Below 29047, lower levels of 28985-940 / 28887-870 & 28816 could come into play
E) If 29845 is taken out, BankNifty could rise to 29880 / 29930-950 & 30016-26
F) Break of 29816 could trigger a move lower to 28730 / 28664-612 & 28545-525
BNF (Weekly Profile)
29465 [ 29784 / 29019 ]
BNF continued the previous week’s weakness as it opened lower on Monday below previous week’s low to drive further down as it left singles from 29785 to 29592 to make lows of 29356 as it left a ‘b’ profile for the day. The auction then made a balance on Tuesday but left a daily FA at highs of 29512 as it closed in a spike down which was an indication that more downside is in store and this was confirmed on Wednesday as BNF opened below the spike and tagged the 1 ATR move down of 29122 from 29512 and went on to make lows of 29019 but once again left a ‘b’ profile for the day which meant there was no new selling happening. Thursday saw BNF testing the lows again as it made a similar low of 29021 but could not extend lower leaving poor lows on the weekly profile which also indicated exhaustion as it made an inside bar & a normal balanced profile on the daily. Friday saw some initiative buying happen in BNF after a long time as the auction left a small buying tail followed by a range extension higher for the first time in 7 trading days and went on to almost tag the FA as it made a high of 29510 before closing the week at 29465 leaving a ‘b’ profile on the weekly with singles at top from 29592 to 29854 which would be the resistance in the coming week if the auction manages to negate the FA of 29512. The profile has HVNs at 29408 & 29248 which would be the support levels to be on watch in case of a dip. The weekly Value is 29176-29408-29504
