Nifty Spot Weekly Profile (02nd to 06th Aug 2021)
16238 [ 16349 / 15834 ]
Previous week’s report ended with this ‘The weekly profile resembles a composite ‘p’ with Value forming completely inside at 15724-15796-15876 as the bracket behaviour on the larger time frame which has been in play since the first week of Jun continues with multiple attempts to move away on either sides have been met with rejection so it remains to be seen if we get a definite move away from this zone with the weekly VPOC of 15921 being the reference on the upside whereas the daily VPOC of 15654 and this week’s responsive buying tail of 15550 to 15513 being the zone to watch on the downside’
Nifty opened with a gap up of 111 points on Monday but formed a narrow 58 point range balance buiding a prominent POC at 15877 as it tagged previous week’s high of 15893 into the close and gave another higher open on Tuesday where the auction gave that move away from the weekly POC of 15921 first with a small but important initiative buying tail in the IB from 15936 to 15914 and then accelerated this upmove with the help of 3 extension handles at 15970 / 16000 & 16048 confirming a move away from the 2-month bracket as it zoomed up into the close leaving another round of singles from 16085 to 16048 confirming the 4th extension handle at 16105 while making new ATH (All Time High) of 16147. Nifty continued this imbalance with a hat-trick of gap up opens on Wednesday as it left another buying tail in the IB and went on to make new highs of 16290 in the ‘D’ period which marked the end of the upside probe as the day formed a ‘p’ shape profile with a prominent POC at 16250 and Thursday open saw the first OAIR start of this week and continuation of this balance in the first half of the day after it left a PBL at 16221 in the ‘C’ period but saw some shorts getting trapped in the second half triggering a short covering move in the ‘H’ period where it left an extension handle at 16294 resulting in similar highs of 16348 & 16349 in the ‘J’ & ‘K’ periods confirming exhaustion in the upmove as no fresh demand was seen and this led to a retracement back to 16294 into the close with the dPOC shifting higher to 16323. Friday saw another OAIR start as auction made attempts to probe above 16323 in the IB but could not sustain and for the first time in the week made REs to the downside as it went on to make a low of 16223 taking support just above previous day’s PBL of 16221 forming a ‘b’ shape profile for the day with range completely inside along with a prominent POC at 16267.
The weekly profile is a trending one to the upside as Nifty made a big range of 515 points but represents a DD (Double Distribution) with a small balance at the lows and then a quick zone of mostly singles in between from 15893 to 16205 and at the top forming a 3-day balance. Value was completely higher at 16131-16248-16365 with a close right at the prominent weekly POC of 16248 which would be the reference for the next open.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 16248 for a probe to 16287 / 16328 / 16365 / 16404 / 16449 / 16496 / 16535
B) Accepting below 16204 could lead to a test of 16163 / 16130 / 16085 / 16035 / 16000 / 15970 / 15936
NF (Weekly Profile) – 16252 [ 16350 / 15841 ]
Previous week’s report ended with this ‘The weekly profile has overlapping to lower Value at 15708-15812-15908 with a prominent POC at 15812 which is also around the Roll Over Point of the new series and will be the reference for the coming session to see if NF can give a move away from here on initiative volumes
NF opened the week with a gap up of almost 100 points on Monday and remained well above the prominent weekly POC of 15812 as it made a low of 15841 & first formed a narrow 40-point range IB (Initial Balance) after which it made a slow probe higher re-visiting the 27th Jul FA of 15908 indicating that the PLR (Path of Least Resistance) was to the upside and gave more confirmation of this with another gap up open on Tuesday where the auction not only scaled above previous week’s high but left a buying tail in the IB and went on to tag the daily VPOC of 15974 from 16th Jul. This turned out to be just a trailer for the rest of the day as NF left buying extension handles at 15991 & 16058 and went on to form a Trend Day Up as it made highs of 16162 into the close finally moving away from the 2-month balance with a 250 pointer day and continued this higher timeframe imbalance on Wednesday with a hat-trick of higher opens and an upside probe till 16270 in the IB after which it made the dreaded C side extension hitting new highs of 16295 but could not sustain marking the end of the imbalance and forming a balance not just for the rest of the day as it left a Normal Day with a close at the prominent POC of 16261 but continued it in the first half on Thursday where it remained in the 69-point narrow range IB before moving away in the H period where it left an extension handle at 16294 & went on to make new highs of 16350 building volumes at 16331 but saw some liquidation into the close as NF got back to 16288 negating the extension handle leaving a 2-day composite with a low volume zone from 16248 to 16331 which it filled up on Friday after making a high of 16333 in the IB and for the first time in the week made REs (Range Extension) lower as it made a low of 16233 forming an inside bar on the daily. The weekly profile was a trending one to the upside with completely higher Value at 16128-16260-16350 which ended with a 3-day balance with a prominent POC at 16260 which will be the reference for the open next week.
BankNifty Spot Weekly Profile (02nd to 06th Aug 2021)
35809 [ 36220 / 34588 ]
Previous week’s report ended with this ‘The weekly profile is a Neutral one with a FA at top and almost similar Value as previous week at 34450-34570-34990 with a close right at this week’s prominent POC so has a good chance of moving away from here in the coming week on either side with 34805 & 34986 being the levels to watch on the upside apart from the FA of 35188 whereas the immediate lower references being at 34348 & 34220 below which the positional buying tail from 33907 to 33560 from 21st May could come into play
BankNifty opened higher on Monday and probed above the first weekly reference of 34805 as it made a high of 34839 in the IB and made an attempt to extend higher but could only make marginal new highs of 34861 as it got rejected back into the IB and was forming a narrow range balance for most part of the day building the POC at 34791 but saw a late liquidation break in the ‘K’ period as the auction made a big RE lower tagging 34588 but stopped short just above previous week’s POC of 34570 which indicated that the demand was defending this zone. Tuesday gave more confirmation of the buyers taking control as the auction not only left an initiative buying tail in the IB but went on to form a Triple Distribution Trend Day Up as it left couple of extension handles at 34855 & 34980 taking out the higher weekly reference of 34986 and went on to negate the FA of 35186 while making a high of 35238. Wednesday open saw the continuation of this imbalance as BankNifty not only gave a gap up open but also confirmed a Drive Up confirming an initaitive tail in the IB along with a buying extension handle at 35667 and made a trending move higher till the ‘D’ period where it not only tagged the weekly VPOC of 35700 but also tested previous month’s high of 35985 stalling once again right at the 12th Mar selling extension of 35988 which led to a retracement to 35686 which brought back the demand and this led to a fresh RE higher in the ‘I’ period and made higher highs till the ‘K’ period as the auction went on to hit 36220 stopping just below the daily VPOC of 36233 from 12th Mar and left a responsive selling tail from 36138 to 36220 marking the end of the imbalance to the upside. The auction then formed a balance coiling over the last 2 days of the week as it made a daily range of 454 & 380 points staying below 36138 and forming consecutive Normal Days leaving a 3-day balance with Value at 35755-35820-35994.
The weekly profile represents a DD (Double Distribution) with the lower HVN at 34800 and the buying singles from 34980 to 35542 along with the upper HVN at 35820 around which BankNifty closed. Value was completely higher at 35540-35820-36180 but the auction will need to stay above 35820 & get fresh buying to negate the selling tail of 36138 to 36220 and continue higher in the coming week where as on the downside, the DD singles will act as probable support zone.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 35822 for a rise to 35930 / 36041 / 36138 / 36233 / 36381 / 36504 / 36655
B) Accepting below 35755, the auction could test 35660 / 35542 / 35420 / 35298 / 35130 / 35052 / 34980
Extended Weekly Hypos
C) Above 36655, can expect higher levels of 36756 / 36865 / 36961 / 37059 / 37181 / 37331 / 34780 / 37625
D) Below 34980, the auction could fall to 34861 / 34774 / 34690 / 34570 / 34450 / 34348 / 34220 / 34039
BNF (Weekly Profile) – 35941 [ 36275 / 34678 ]
Previous week’s report ended with this ‘The weekly profile is a Neutral Centre one with overlapping Value at 34550-34660-35110 with 34887 being the first big hurdle on the upside along with the July series VWAP of 35096 and this week’s FA of 35296 whereas BNF would remain weak below 34660 with Thursday’s VWAP of 34565 being the immediate support below which it could test the buying singles of 34348 to 34236 which if broken could trigger a fresh leg lower
BNF opened with almost a 150 point gap up on Monday but settled into an Open Auction forming a very narrow IB range of just 149 points as it got accepted above the first reference of 34887 and even made a RE (Range Extension) to the upside in the ‘D’ period as it hit 34983 but could only form marginal new highs of 34987 in the ‘E’ period indicating lack of demand which triggered a long liquidation break as auction confirmed a FA (Failed Auction) at top and went on to make new lows for the day at 34678 stopping just previous week’s POC of 34660 which meant that the buyers were back in this zone and they pushed the auction back into the IB negating the FA into the close leaving a Neutral Day with completely higher Value. Tuesday saw an OAIR start and a balance in Monday’s Value for the first part of the day as it formed a HVN at 34921 and then gave a move away on the upside leaving couple of buying extension handles at 34955 & 35090 and negating the FA of 35296 while making a high of 35347 leaving a Triple Distribution Trend Day Up with the dPOC shifting higher to 35288 into the close. BNF not continued this imbalance with an Open Drive Up on Wednesday as it left a long initiative buying tail from 35639 to 35413 in the IB and then with multiple REs to the upside starting with an extension handle at 35748 as it went on to tag the 16th Jul VPOC of 35992 in the ‘D’ period and followed it up with a fresh set of REs from the ‘I’ period onwards scaling above the 16th Jul swing highs of 36199 while hitting new highs of 36275. This unchartered teritory attracted some good profit booking by the longs resulting in a resposive selling tail from 36275 to 36194 as the auction made a retracement to 36012 into the close marking the end of the upside probe and a return back to balance with BNF remaining in between the responsive selling tail base at 36194 & the buying extension handle of 35748 for the next 2 days forming a nice 3-day composite. The weekly profile like NF was a trending one to the upside with completely higher Value at 35630-35930-36190 but resembles a ‘p’ shape with a close right at the prominent POC which will be the reference for the next open and has couple of buying singles with the first one at 35244 to 35090 and the next one between 35639 to 35347 which will be the important demand zones for the coming week. On the upside, the auction will need to get initiative buying and get accepted above 36194 to keep the PLR (Path of Least Resistance) to the upside.