Tuesday’s high volume reversal from 10930 (spot) set the stage for a change in the trend of the past few weeks and the Nifty traded a 340 point range giving up all the gains of May series and closing the week at the lowest point. The BankNifty also reversed lower from the profile of 2/2 and dropped 1133 points during the week.
In the week to come the Nifty may put in a bounce as it closed at a high volume point but the bounce is more likely to run into some additional selling as the week wears on.
On the charts posted below we see 10580 as an important pivot and as long as the trade stays above 10580 in the first few sessions of the week the Nifty is likely to run back to 10717 again.
Last week’s weekly outlook is at – https://vtrender.com/weekly-outlook-for-week-dated-14th-may-to-18th-may-spot-prices/
Nifty Weekly Profile ( spot) :
The week gone by was traded in a 10929- 10589 range which was the biggest range we saw since the recent lows of 9951.
Our preferred outlook for the series is that the Nifty should settle in a 10600- 10900 range for May.
We tested the upper extreme on Tuesday and closed near the lower one on Friday.
Our bias is for an upside from here which should take the Nifty back to 10717- 10740 zone from here.
We would expect to see selling come back at the 10717- 10740 zone if a bounce materializes.
However, a failure to secure a bounce may push the index lower to 10464 – 10440.
That move also weakens the overall structure pushing the market closer to 10200 for next series.
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) :
Last week the BankNifty traded a 26972-25839 range of 1133 points.
The highs of the profile of 2/2 where the initiative seller has first appeared in Feb were not violated and the BankNifyy drive down again from the same pivot lower.
Support lower for the index is near 25500 for the week ahead..
We expect bounces to run into supply at 26110 and 26250 again.
26420 is the zone where there has been long liquidation and sellers initiating new short trades. It would be a good point to look for short opportunities in the week.
If support lower at 25500 fails then the BN has little support till 25035.
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/