Another day and another round of seller annihilation as the buyer once again closes at session highs. It’s happened at 7696 at 7746 and today at 7796 F
Nifty July F :
Background / Previous Auctions :
Medium Term :
The Friday May 16th range of 7639- 7182 looks like a completed bell curve now as the market has successfully auctioned out the entire range, building volume. This zone forms the base of the move we may see in the NF. The projected range expansion is upto 8100 in index F .
Short term :
Buyers seen holding up the index F at 7466 and 7538 and at 7628 . .Supports now rise to 7540 conservative and 7580 for the trend. Value seen going higher in the above chart. Projected imbalance above the 7765 level is at 7851 F (almost done today)
Observations in Thursday’s session :
https://www.dropbox.com/s/v07iuc61bcadt58/OF_10min.png
1) 7839 high against the short term projected 7851 we have been stressing on repeatedly.
2) Short liquidation from 7792 to 7815
3) Day type was an incomplete DD with the second distribution likely to complete between 7810- 7860 tom.
Hypothesis for Tomorrow :
Hypo1 : As mentioned above we look for a DD to complete in tomorrow’s auction. According NF expected to trade in the 7815- 7868 zone.
Hypo2 : A break of 7807 will bring 7792 and if buyers do not respond there then NF will drop to 7764/ 7747.
BankNifty F :
Background/ Previous Auctions :
Medium Term :
Friday May16th huge range of 15888- 14418 June F provides a background to the entire moves we may see in the BNF for some time.
Short Term :
Supports in BNF for the current week are at 15160 F followed by the old one at 14830. Resistance at 15470- 15510 and then 15640. Projected target for friday close is at 15770 with trigger being an open above 15570.
Observations in Thursday’s session :
https://www.dropbox.com/s/nib52br89ukijnv/OF_BNF_10.png
1) Sideways consolidation continues in BNF for the 4th day as CNXIT piles up the gains.
2) vwap of today’s trade was at 15506 and BNF did well to close above 15510.
Hypothesis for Tomorrow :
1) Hypo1 – If we hold 15570 at the open then BNF can close the session near 15770 which is the day target
2) Hypo2 – Below 15510 it will go back to 15390/15410.