We spoke of the stopping volume a 10820- 10840 spot repeatedly in our weekly reports through the month of June. We have seen repeatedly supply round 10820 for continuous sessions in our OrderFlow charts. However, the support built around 10700 spot was frustrating sellers most of the days. In the week gone by the sellers forced a run on the 10700 put strike forcing liquidity and dropping the index below 10700 for the last 2 sessions of the series. The forced liquidation ensured that the Nifty hit 10557 on settlement day of June series.
The auction of last week was a reminder to traders who rely too heavily on indicators such as Open interest to know the pulse of the market. The fact that the largest put strike of the series went under, is a reminder to traders that they should focus more on Price and Volume rather than derivatives of these variables to arrive at a bias.
The June series was traded with a vwap of 10737 and POC of 10760.
The 10740- 10760 zone is resistance for the series of July.
With a Sl above the mentioned 10820 zone, traders should look to initiate short positions on any trips to 10740- 10760 for a move down to 10440/ 10480 and a possible 10320.
This is the broader view for the series, but let’s focus entirely on the 5 sessions coming up till the 6th of July.
Last week’s post is at – https://vtrender.com/weekly-outlook-for-the-week-dated-18th-june-to-22nd-june/
Nifty Weekly Profile ( spot) :
The week was traded in a range of 10830 to 10557 with a POC of 10770 spot .
Early support can be seen at 10600- 10620 from the Profile charts.
Those of you who track Open Interest should see Put Open interest build up near 10600 as the week rolls on. ( the reference to open interest is being made here only to show that the charts make a case for a support, the open interest builds later and not the other way around)
The downside should be covered well in the week if 10600 holds on the Nifty ( we don’t see much downsides till this holds this week)
The auction would, however, test sellers at 10740- 10760 advertising opportunity for them there.
If 10760 does not show sellers, a move to 10830-10840 is highly probable
These are our weekly projections and broadly the setups we would look at to trade in the coming week subject to a confirmation from our OrderFlow charts. These plans can change depending on the change in the day auction.
To know more about how we use these setups to trade and to stay updated and get actionable trading advice subscribe to the VTR ( Vtrender Trading Room). More info at-https://vtrender.com/trading-room/. Pricing details at – https://vtrender.com/pricing/
BankNifty Weekly Profile ( spot) :
The banknifty traded a 26806- 26161 range testing again both extremes of the profile of last week.
We see the broken 26500- 26560 zone of last week as an additional supply point over and above the 26800 we have been highlighting.
support exists still at 26160.
Range bound moves within the June composite should continue.
These are our weekly projections and broadly the setups we would look at to trade in the coming week subject to a confirmation from our OrderFlow charts. These plans can change depending on the change in the day auction.
To know more about how we use these setups to trade and to stay updated and get actionable trading advice subscribe to the VTR ( Vtrender Trading Room). More info at-https://vtrender.com/trading-room/. Pricing details at – https://vtrender.com/pricing/