Nifty :
Another neutral day in the markets today with a close at the extreme making it a neutral extreme.
The b shaped profile and the spike into the close was clearly short covering by weak shorts from the past two days. We all know that short covering is not a sign of market strength.Dpoc remained at 4716 during the spike.
At the open tomorrow, spike rules will apply. An open above spike high is bullish. An auction in the spike area upto 4716 will be seen as a continuation and can cause further upsides in the coming session. However a break below the POC will be bearish and constitute a failed upswing.
Overhead resistance at 4833/ 4842 looks prominent.
Here is another chart to show the auction as a composite profile.
The chart shows the auction from the 17/11 till date. 4884 represents the time POC of an upper bell and the lower bell seems to be in formation.
The preferred scenario would be to auction today’s spike zone tomorrow, which is the zone between the close of today and 4716 on the chart. Once it resembles the upper bell, the market will be free to move .
BankNifty :
The BankNifty also had a b shaped profile , but the overall day was inside the previous profile.
Strong single print selling exists between 8547 and 8591.The responsive buying ( single prints) seen at 8211 does indicate a buyer also
The inside day breakout should set up a lucrative trade opportunity in the BankNifty.The responsive buying seen at 8211 does indicate a buyer also
Another neutral day in the markets today with a close at the extreme making it a neutral extreme.
The b shaped profile and the spike into the close was clearly short covering by weak shorts from the past two days. We all know that short covering is not a sign of market strength.Dpoc remained at 4716 during the spike.
At the open tomorrow, spike rules will apply. An open above spike high is bullish. An auction in the spike area upto 4716 will be seen as a continuation and can cause further upsides in the coming session. However a break below the POC will be bearish and constitute a failed upswing.
Overhead resistance at 4833/ 4842 looks prominent.
Here is another chart to show the auction as a composite profile.
The chart shows the auction from the 17/11 till date. 4884 represents the time POC of an upper bell and the lower bell seems to be in formation.
The preferred scenario would be to auction today’s spike zone tomorrow, which is the zone between the close of today and 4716 on the chart. Once it resembles the upper bell, the market will be free to move .
BankNifty :
The BankNifty also had a b shaped profile , but the overall day was inside the previous profile.
Strong single print selling exists between 8547 and 8591.The responsive buying ( single prints) seen at 8211 does indicate a buyer also
The inside day breakout should set up a lucrative trade opportunity in the BankNifty.The responsive buying seen at 8211 does indicate a buyer also
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