The spike seen at the close of the session on Thursday in the Nifty and the BankNifty was accepted early at the open and the market stayed above 10550 from the Open forcing short covering and a P shaped profile in the Nifty and the bankNifty. A P shaped profile is a real-time assessment that the move is a result of shorts covering positions.
By the close of the week, the Nifty found itself at the same place it started the week at. There was heavy responsive selling at the close near 10629F which forced an immediate drop against the trend of the day. Into settlement week from Monday on watch would be whether the Nifty can force some more shorts out above 10630 or we revert lower.
The short-term weekly outlook for the Nifty and the plan we intend to follow is at – https://vtrender.com/weekly-outlook-for-week-dated-28th-may-to-1st-june/
Nifty May F:
- The NF Open was an ORR
- The day type was a Normal Variation day
- Largest volume was traded at 10602 F today
- Vwap of the session was at 10585 with volumes of 105.5 L in a session which traded a High-Low range of 10637-10518 for 115 points.
Monthly Zones:
- The vwap of the April series is at 10419 spot and the POC is at 10556.
- The settlement day rollover volume point is at 10632 F and 10603 F.
Weekly Zones :
- The broken 10730 F zone is major resistance for the rest of the series
- The 10630- 650 zone from Fri/ Mon likely to resist also
- Immediate support lower at 10550F for now.
- The second layer of Support lower at 10410 F now
Daily Zones:
- Value areas are at 1063010605-10571 for tomorrow
Plan :
a) Watch 10642 near the open which has potential to force some more short covering to 10686 and 10727
b) Staying below 10602 can drop to 10570/ 10560
c) Below 10550 more weakness to 10526
d) A break of 10520 would mean that the market upmove is done and we test 10490 and 10470 from Thursday again.
For tradeable ideas on these hypos and to check the OrderFlow live visit the trading room.
If not a Trading Room member you can get immediate access at – https://in.explara.com/e/vtrender–trading–room/checkout
BNF May F:
- The BNF Open was an ORR
- The Day type was a Normal Variation day
- Vwap of the day was at 26148 with Volumes of 28.1 L and a High – Low of 26292-25951 for a range of 341 points.
- Largest Volume was traded at 25110 F today
Monthly Zones :
- The vwap of Apr series is at 25010 spot with POC of 25050
- The settlement day rollover volume point is at 25035 F .
Weekly Zones :
- Technical pullback looks done near 26300 of Friday
- Retrace back to 25800 is a high probability weekly play
Daily Zones:
- The Value areas are at 26230-26110-26050 for the session next.
Plan :
a) An auction below 26340 likely to drop to 26110 again
b) any further downside to 26040/50 may see responsive buying attempts
c) Above 26340 anticipatory shorts can be forced out and the BN can run to 26480.
For tradeable ideas on these hypos and to check the OrderFlow Live visit the trading room.
If not a Trading Room member you can get immediate access at – https://in.explara.com/e/vtrender–trading–room/checkout