The BNF and NF trended in the second part of the day after a strong Open and a lacklustre morning session post the IB period.
We spoke about the 12920 supply zone and the 6828 resistance in NF April and the bulk of the morning was spent negotiating the supply at these levels.
In the NF chart above we see a short stout profile in the 6806- 6828 zone as the market traded heavily in this zone to outstrip the prevalent supply.
The auction leaves 6819- 6823 the vwap and IB high of the day as important support not just for tomorrow but the rest of the expiry till wednesday.
As long as 6819 holds we can look at an expiry closer to 6904/ 6917 or a touch of the same in the next 2 sessions.
The view is more comfortable if 6834 does not break or get tested in tomorrow ‘s auction and new longs can be taken above day VAH of 6834 or PDH for tomorrow at 6849.
Below 6819 the auction should drop 20 points quickly to 6802 and a failure there can invite further down moves to 6787/ 6774
In the BNF chart we see the supply excess from 15th April being covered by the profile today and a visit done to the 13026 zone mentioned in last night’s post.
It’s an easy trip to 13140 next which is a 100 points above current high of 13046 and should be traded with a sl of 13015 below the 13020 levels.
vwap of 12942 and is the key number for tomorrow not just because it was vwap of the trend day but also as it coincides with the previous supply zone prevalent there.
The upper vwap bands posted yesterday have not moved up a lot and hence volumes need to pick up more from here for a break to the highs this series.