02/05/2012

We will come back from a holiday tomorrow with the overseas US market putting in a big move in the last session based on an extremely good ISM number and the Australian bank cutting 50 bps causing a spike in that market there.

 

It will be interesting to see what the market does at the open tomorrow beyond the open print.

 

The charts of the NF showed excess and larger TF covering shorts at the open price on Friday.

 

The BN on the other hand was balanced and a move away from value area should set up a good trade.

 

Nifty Mp 16 02/05/2012

 

Bn Mp 17 02/05/2012

 

Both the NF and the BN will enter low volume zones if there is an upmove. The previous day's high( PDH)  becomes an immediate reference point and activity needs to be seen as succeeding or failing above this point. If it fails at PDH, then the next ref shifts immediately to VAH.

 

On the other hand a successful auction will be scrutinized at the LVN ( marked in blue) and the HVN ( brown dotted lines) in the above charts.