Today’s day in NF and BNF marked a significant departure from the prevalent up auction on 14% higher volumes in Nifty.
Even though there was the usual sharp move noticed in the last hour of the day, the broader trend is shifting to down.
The Profile chart of the NF shows a rejection of yesterday’s close in the NF and single print selling at the top.
This single print selling ( also called excess) would tell us that the market is not willing to consider prices above 6790-6800 yet and the auction does not have new buyers there.
The shape of the auction is a b often associated with long liquidation.
The Open Interest charts pointed to an OI cut in both NF and BNF today.
The OrderFlow chart shows a declining vwap and a trend lower.
Even though we got the customary rise into the close it was not able to close above day VAH as it has in the past few times.
The market may now attempt to see if there are more willing sellers below VAL in the next few sessions.
Tomorrow the positive bias will come if we come above day VAH for tom now at 6773.
A Move below VAL 6744 tomorrow is new sellers and likely to go to 6705.
However being the weekend if that move below VAL does not meet sellers then the market is most likely to settle at 6750- 6760 zone to clear the week.
The BNF chart also shows the same trend lower and a falling vwap.
Price stayed below the first support of 12750 pointed out in yesterday”s post and the excess meant that the expected move to 12880/ 12940 was curtailed.
The BNF is a triple inside now with 2 day vwap at 12690 ( not including RBI day)
This 12690 sets the bias tomorrow with weakening expected below it.
The profile chart is a b again like NF showing long liquidation.
The OI picture showed 5408 contracts closing off today.
vwap is at 12673 for the fall today and re- confirms the level mentioned above.
12550 would be the objective of the move lower followed by 12378.