Last week we spoke of a bias around 10815-10825 spot based on the auction of the week prior. For 4 of the 5 sessions, the Nifty stayed below 10815 and only a spike on Friday took it above the zone for a close at the pivot point. The inability of sellers to force the market down below 10700 for 4 of the 5 sessions created a run on sellers in the second half of Friday.
Whilst spike rules would apply at the start of the week, the close at 10820 makes it neutral again for the settlement week ahead.
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 10837 to 10701 with a POC of 10770 spot .
The series of June which closes on Thursday has been traded with a vwap of 10760. It’s been a balanced market with a POC at 10812.
This would tell us that the Nifty should be closing either at 10760 or near 10810 on settlement day.
But the decision of the regulator to impose additional margins for the coming series may impact inventory rollovers creating uncertainty in directions especially late on Thursday which is the period for stock specific rollovers. Whilst institutions should no be affected more, the fact remains that there would be lesser capital to deploy for the inventory held and stock specific action is a high probability zone for next week.
Structure wise the Nifty is a buy on dips now as long as 10760 spot holds.
It could also rise sharply above 10860 to close the week near 10930/ 10950.
Below 10730 the sellers begin dominating again and can push the auction lower to 10670 and 10630.
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- 26205 range testing both extremes of the profile of last week.
The close was near supply.
An inability to move above last week’s highs of 26800 can push the auction down to 26560 and 26430 again to test for willing buyers
If the test holds good the BN can retrace back to 27000 again
A failure below 26370 can invite new selling and the BN can drop to 26100 and 25800 again.
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/