In the week gone by the auction pulled lower quickly from Friday’s lower profile and down to the vwap of April series at 10417 where responsive buying was seen again. The April series was a Trend up profile and the fact that the vwap was defended almost to the tick shows that Buyers are around to defend lower prices in the higher time frame,
In Profile we work with Market generated information rather than random concepts fitted on to a price screen. The vwap is a very good estimation on where buyers and sellers have agreed on a value in April and hence an important reference to note.
The current series of May is trading with a vwap of 10668 which tells us that the recent auction in May has been dominated more by sellers and Buyers would have to push above 10670 on the weekly time frame to regain control.
We see 10675 and 10750 as supply points for the week into settlement.
Nifty Weekly Profile ( spot) :
Bulls have shown intent on Friday climbing above 10520 spot. They may attempt to push and test the selling at 10670 and 10720/40 in the week ahead.
Our plan is to trade the zone between 10515 to 10720 for the week ahead.
We would be looking for signs of responsive buying closer to 10520 and for the sellers to respond on probes to 10670 and 10720/40 higher.
The Nifty is weak below 10520 and could even drop to 10375 by settlement if responsive buying does not emerge there.
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.
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BankNifty Weekly Profile ( spot) :
The BankNifty for the week may show supply if it probes higher to 26450/ 26500 levels.
26260 is the early support for the first 2 sessions of the week.
If it stays below 26260 zone may initiate a drop to 26050 and 25800 in the week ahead
An auction which stays above 26260 would mean that the BN wants to test the selling at 26450/ 500 zone.
An update to this post was made on Sunday 27th May. You can view the video on- https://youtu.be/fAXJxYXJ6zg