23/02/2012

Yesterday we spoke about – " The composite structure gives bigger odds for a rotation at current prices and a move back to test the broken zone just under 5580".

 

The seller continued his work in the morning and took the index to 2IB after breaking through the Initial balance on the lower side again. Keep an eye out for these initial balance breaks and the direction,  as it gives you running information on the control exerted. by longer time frame players. However the expected squeeze did happen later in the day, as some sellers were forced to cover and the market found itself doing a range extension above the Initial balance in the afternoon.

 

But the seller came back at VAL and drove the market back through the IB to complete a neutral day with a close at DPOC. The neutral day is important as it can lead to a trend type day with one party giving up control completely to the other. A neutral day tells us that the market has found balance after a move of imbalance.

 

The profile charts below confirms the same.

 

Mp%20N 23/02/2012

 

The chart is of NF March and the value shows a close back in the 5538/40 zone. An exit of value and range tomorrow will set it once gain to test the 5472/ 5454 zone .

 

BanKNifty :

 

Mp%20B 23/02/2012

 

The BankNifty chart shows clear rejection of the high volume points and max auction in the lower volume zones from before.

 

The buyer from Feb 15th sits at 10689 march future and any move below 10605 will confirm a move to 10380 which is the lower end of that small bracket from 2 weeks prior.