Nifty Spot Weekly Profile (24th – 28th Dec)
Nifty Spot in the previous week gave a Neutral Extreme Profile Down & the reference for this week’s open was 10738-10790 (read last week’s post here) & the open on Monday was right at the upper end of this reference with an almost OH start which meant that the imbalance to the downside could continue. Nifty then got into the tail of 10745-10680 & closed in a spike lower on Monday showing that the imbalance was still not over which got confirmed on Wednesday when it opened below the spike & drove lower to tag the composite VPOC of 10536 of the 2 day balance of 10/12 & 11/12 from where Nifty has started the uptrend & the imbalance to the upside. This touch of VPOC not only stalled the down move but Nifty went on to confirm a FA at 10534 & closed the day as a Neutral Extreme to the upside which confirmed that the auction has reversed. The next day saw Nifty open with a big Gap but was getting resisted at the vPOC of the trend day of 21/12 which was at 10824 & stayed in a narrow range all day which ended in a spike lower, the Value made was much higher. On Friday, Nifty gave another gap up & drove higher at open leaving an extension handle on the weekly profile at 10834 with singles till 10850 which could act as support in the coming week. The weekly Value Area is at 10632-10734-10864 & though Value was lower compared to the previous week the profile is a Neutral Extreme again but this time to the upside the PLR would continue to the upside of Nifty stays above the 10834-10850 zone.
NF (Weekly Profile)
The weekly profile on NF has couple of HVNs at 10923 & 10809 & though the weekly Value has been overlapping & lower, NF has closed at the highs so staying above the HVN of 10923 will be bullish whereas as staying below it NF could fill in the low volume zone till 10850. The weekly Value Area is 10740-10809-10932.
BankNifty Spot Weekly Profile (24th – 24th Dec)
BN Spot opened below previous week’s Value on Monday & an attempt to probe higher got rejected after which it broke the VPOC of 26800 & the next bounce was met with resistance at the VAL of 26865 which indicated that BN could probe lower which it did first closing in a spike lower on Monday & then opening with a Gap down on Wednesday driving further down tagging the extension handle of 26518 & making a low of 26408 where it left an FA to confirm that the Auction to the downside is done with. BN then got back above the weekly VAL of 26865 & promptly did the 80% Rule on weekly when it gapped higher on Thursday to tag the wVAH of 27205 but could not sustain above it indicating that upmove from the FA was done with. BN probed lower to close at lows on the day but again held that level of 26865 & then on Friday gave a big Gap up & drove higher but again got resisted at that 27205 level giving an inside day. The weekly Value area is 26775-27155-27175 which is almost same as previous week’s Value & BN could move away from the 2-week composite in the new year giving a trending move.
BNF (Weekly Profile)
BNF has made a Neutral Extreme Profile on the weekly to the upside & has closed near the HVN of 27272 which is also the weekly POC. Any follow up to the upside in the coming week could see it tag the weekly VPOC & HVN of 27472. However, below 27272 BNF could just balance in the weekly Value area of 26920-27272-27304.
