The markets finished the big imbalance seen yesterday and traded back in balance.
Within this balance seen today there was a spike into the closing minutes of the session as the market went from the highs of the day to the lows.
the NF profile chart shows the break from the old balance ( 31st March to 7th April) , the trend day yesterday and the balanced profile of today.
That spike into the close in the NF meant a closure of 18572 contracts in the Nifty futures today.
14439 contracts were added in the session yesterday.
This piece of data is not a great sight for longs holding up for further up moves tomorrow.
Within the day however today we saw a defence of the 6815 level as discussed in last night’s post.
For tomorrow this same 6803- 6815 is support and we can take a short term intra day sell below this range for 6786/ 6759-48 and a possible 6708 again if we do look below 6748.
We have also noted that within this balance there is a spike from 6852 to 6810.
This spike ( move down) will be negated completely only above vwap of the day standing at 6837.
Hence 6837 will be new resistance for the day tomorrow and sl for all shorts taken below 6810.
The bank nifty profile is similar to that of the Nifty including the spike lower into the close.
The profile has support at the top of the previous balance near 12900. This is a swing support and any move lower than this point will invite long liquidation quickly to 12730 and 12525 below that.
The spike can be negated only above 13057 vwap tomorrow which will be the resistance for all long positions.
Coming back to targets discussed of 6915 and 13350 for next week discussed in yesterday’s post the UP auction looks suspended temporarily but we will get a confirmation only when we go down below 12900/ 6800 as broader numbers.
However the BNF went to PR3 of 13123 and met sellers and the NF made it to PR2 today.