The NF finished the day off as a normal distribution and the BNF had a double distribution noted in today’s auction.
In yesterday’s post we spoke about the upward drift of value and the fact that BNF would be weak only below 12810.
The RBI event created a 200 point move within seconds from 12695 to 12806.
However thereafter the market stayed below 12810 and even went below the 12708 projection.
The resulting weakness brought the BNF to 12565 today.
Vwap for the day is at 12711 and important for the continuation of downtrend tomorrow or otherwise.
The Profile chart shows a Double Distribution pattern.
This pattern is mostly created when news flow hits the market during market hours and alters the perception of value . Over the slightly larger time frame we have seen today a definite pause in teh UP auction and we have two sets of values today in the day TF in the BNF.
The lower distribution is 12720- 12550 and looks complete. The Upper one being 12750- 12850.
For tomorrow if the auction is not contained in the lower distribution then it may quickly rise above to 12855.
Staying below 12670 tomorrow, the BNF will visit 12550 and can possibly go to the 12420- 12460 Bal high to check for interest.
The NF profile from yesterday showed a ledge formation with a high of 6748.
We had noted the auction below to go check 6707 below 6739 and above 6748 to a possible 6786.
The Profile chart shown above cancels the ledge formation at 6748 neutralising the selling happening there.
Besides no new sellers were detected as the NF tested the lows of 6706.
If the NF stays up above 6766 tomorrow then using 6747 as a SL can go on to hit 6791 and 6823/ 29.
6738 is the vwap of the distribution today .
6738 will again be the point of intra weakness tomorrow below which 6706 should be tested again.
6685/ 6649 mentioned yesterday still remain targets below 6706.