Last week settlement was done in the Nifty at 10724 in a late probe upwards which was retraced by Friday. The vwap of the just concluded May series is at 10669 spot and the weekly close on Friday was a shade higher neat 10696 spot.
We outlined our reasons for the 10730- 10750 spot zone to have supply in our video post at – https://www.youtube.com/watch?v=fAXJxYXJ6zg&t=3s
The initiative selling seen from this zone has been tested in the past two sessions and the coming week would be on watch to see if the supply in the zone can persist.
The BN traded the May series with a vwap of 26091 with a sharp spike above 26700 on settlement day which was designed to take out all the penny writers upto 27000 and 27100. I have mentioned about this kind of writing not being done by smart money periodically and the BankNifty would continue testing such writing in the weeks ahead too.
On Friday BN came back and tested the extension handle of that last move of Thursday.
Nifty Weekly Profile ( spot) :
We would like to see the coming week trade between the vwap of June series at 10666 and the earlier supply of 10750 with an allowance of 30 points intra day for locals or smart money.
From a swing perspective on the medium term, there is no confirmation of strength till the supply at 10750 is broken. Like wise the seller gets a hold over the auction only if he manages a trade below 10630 spot.
Our plan 🙁 levels based on spot)
a) See if 10750+ Filter throws up supply
b) watch for demand at 10640- filter
c) If 10620 is not held the auction should slide lower to 10525 and 10470
d) A short covering bounce above 10770 can take the index to 10890
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 26500 zone is on watch in the early part of the week for a fresh demand.
The 26880 and the 27100 zone has 2 layers of supply
Plan :
a) Staying above 26880 the BN can push higher to the supply at 27100 and can possibly extend to 27500 also
b) There is a confirmation of weakness on a trade below 26300 spot
c) watch the daily extension handle at 26660 in the early part of the week.
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/
