Weekly hypos for the week dated 12th Feb- 16th Feb ( spot prices)

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Last week the Nifty and major global markets trended lower creating value below the lows of the previous weekly profile. Since we auctioned below the value and range of the prior week it was clearly an indication of a seller assuming control of the auction. However, we saw sharp responsive buying at the lows especially near 10300 early on Tuesday. This RB managed to hold the index from further slides. However, as I had noted in last week’s post the Nifty has managed to stay below the vwap ad POC of the Jan Monthly profile making structure weak. We feel rises to 10600 and 10750 which was vwap of Jan are short opportunities and the NIfty should test the lows of 10050 at least once in the coming weeks.


Last week’s post is at –https://vtrender.com/weekly-hypos-week-dated-05th-feb-09th-feb-spot-prices/.  The support at 10610 stands broken and we are trading well below the 10750 vwap mark which would mean that 10750 would be difficult to cross now in Feb.


Our outlook for 2018 is at – http://vtrender.com/2017-done-heres-2018-can/


Nifty weekly spot TPO profiles:





We traded below 10610 most of the week and the region below 10440 has shown the presence of responsive buying.


If the market stays below 10510 it should go back a retest that buying in the week ahead.


It looks like a 10610- 10300 kind of weekly auction in the day ahead.


Rises to 10610 and 10750 should meet sellers.


Any move below 10300 has support at 10180 and 9986 lower.


Bank Nifty weekly spot profiles:





The Banknifty has more aggressive buyers in the sharp drop to 25024 during the week. Thursday attempts to rise higher and recapture the zone above 26000 was met with failure and the BankNifty closed again lower.


The region around 26000 would continue to act as resistance now and should be used to build short positions in the BankNifty.


The auction is likely to go down to 25000 to check for buyers again.


The coming week could be a 25900- 25000 kind of week, with sellers attempting to come into the auction at higher levels.


Below 25000 the index can drop to 24650.