Nifty Spot Weekly Profile (03rd to 07th Jan 2022)
17813 [ 17945 / 17383 ]
Previous week’s report ended with this ‘The weekly profile is a Triple Distribution Trend one up with a buying tail at lows and another zone of singles from 17161 to 17102 seperating the lowermost & middle distribution which contains the ultra prominent POC of 17229 above which we have another zone of singles from 17265 to 17323 and a higher distribution at top. Value this week was completely higher at 17157-17229-17367 & Nifty could continue the probe towards the 13th Dec VPOC of 17415 and the DD singles from 17458 to 17533 which if taken out can bring the weekly swing high of 17639 & the monthly extension handle of 17688 into play’
Nifty began the year 2022 with a bang continuing the imbalance it had started last week opening with a Drive Up on Monday & leaving a long initiative tail from 17461 to 17383 along with three extension handles at 17479 / 17534 & 17588 to form a Trend Day Up as it negated the weekly swing high of 17639 and followed it up by taking out the monthly extension handle of 17688 at open on Tuesday where it left another buying tail in the IB from 17655 to 17593 and formed a nice balance for most part of the day before giving a spike into the close from 17744 to 17827. The auction got accepted in this spike on Wednesday before giving a extension handle at 17854 in the F period as it formed a Double Distribution Trend Up profile hitting new highs for the week at 17945 stalling just below the important reference of December monthly POC of 17961 and even saw the dPOC shifting higher to 17927 indicating profit booking by the longs. Thursday saw a big 150+ point gap down open in Nifty with the downside probe continuing till 17672 in the A period but the sellers failed to extend it further inspite of making 3 attempts as it stalled right at Tuesday’s buying tail of 17655 leaving a Normal Day with a balanced profile & the TPO POC at 17700 and a short covering bounce to 17790 into the close and followed up on this momentum with a Drive Up Open on Friday as it made a high of 17898 in the IB but made the dreaded C side extension which resulted in a FA (Failed Auction) being confirmed at 17904 and a move down to 17704 as the auction stalled just above the TPO POC of 17700 which was also the 1 ATR objective from the FA after which it left a responsive buying tail at lows closing the week with a Neutral Day.
The weekly profile is an elongated one with completely higher Value at 17664-17706-17862 and will need to take out the daily FA of 17904 to continue probing higher towards the Dec POC of 17961 & the daily VPOCs of 18061 & 18311 whereas to the downside, acceptance below 17706 and the break of 17655 could bring in a test of the lower daily VPOCs of 17518 & 17356 in the coming week.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 17829 for a probe to 17904 / 17961 / 18009 / 18061 / 18115 / 18156
B) Accepting below 17772 could lead to a test of 17706 / 17655 / 17593 / 17561 / 17518 / 17461
C) Above 18156, can expect higher levels of 18210 / 18258 / 18311 / 18390 / 18458 / 18501
D) Below 17461, the auction could fall to 17426 / 17356 / 17281 / 17229 / 17169 / 17083
NF (Weekly Profile) – 17854 [ 17985 / 17410 ]
NF took support right at the HVN of 17411 on Monday & signalled a move away from previous week’s Value with an initiative buying tail from 17494 to 17410 and made an OTF (One Time Frame) probe higher forming a Trend Day Up as it made a high of 17692 and in the process negated the 13th Dec extension handle of 17640 and scaled above the swing high of 17737 on Tuesday after leaving another buying tail in the IB (Initial Balance) while forming a promient POC at 17745 before spiking higher to 17871 into the close. The auction continued this imbalance on Wednesday with a hat-trick of singles in the IB and formed a Double Distribution Trend Day Up as it made a high of 17985 completing the 1 ATR objective on the weekly timeframe but saw the dPOC also shifting higher to 17967 indicating profit booking by the longs after which it not only opened with a 130 point gap down on Thursday but continued to drive lower while making a C side extension where it made a low of 17701 & made couple of more attempts to extend lower but could only marginal new low of 17685 with demand coming back to defend Tuesday’s buying singles of 17692 to 17632 triggering a short covering move into the close to 17840. Friday open saw this imbalance extend further as NF drove higher on lower volumes to tag 17937 in the IB and made the dreaded C side extension to 17949 which was swiftly rejected resulting in negation of the Drive Up & a FA (Failed Auction) which almost completed it’s 1 ATR objective of 17735 in the H period where it left a responsive buying tail marking the end of the OTF (One Time Frame) probe lower and gave a bounce back to 17870 into the close leaving a Neutral Centre Daily profile. The weekly profile after trending higher for the first 3 days represents a ‘p’ shape with completely higher Value at 17684-17750-17884 with the VWAP at 17773 and has an initiative buying tail at lows but will need to sustain above 17885 & negate the daily FA of 17949 to continue higher in the coming session(s).
BankNifty Spot Weekly Profile (03rd to 07th Jan 2022)
37739 [ 38135 / 35526 ]
Previous week’s report ended with this ‘This week’s profile was mostly in previous week’s range with a pretty long buying tail at lows and a 4-day balance which continued to fill up the selling singles from the close of 17th Dec to the gap down open of 20th and formed overlapping to higher weekly Value at 34848-35172-35328 with a move away from here on the final day where it left another HVN at 35483 which will be the opening reference for the coming week and staying above which BankNifty could probe higher towards the daily extension handle of 35696 and VPOCs of 35880 & 36880. On the downside, 35404 would be the immediate level to watch below which this week’s prominent POC of 35172 & the daily VPOC of 35066 could come into play’
BankNifty also made an eventful start to the New Year with a strong Open Rejection Reverse start on Monday as it negated the extension handle of 35696 in the A period and left the first extension handle of the day at 35710 as the B TPO began and followed it up with 3 more extension handles at 36001 / 36206 & 36303 forming a Trend Day up hitting a high of 36492 with the dPOC also shifting higher to 36397 into the close which was not profit booking but shifting of the base by the buyers as it turned out on Tuesday with the auction giving an Open Test Drive Up and tagged the daily VPOC of 36880 but could not extend any futher forming a Normal Day & a ‘p’ shape profile with the prominent POC at 36701 signalling absorption of supply. Wednesday saw a hat-trick of higher opens and the probe back into previous day’s range & value got swiftly rejected resulting in a long initiative tail from 37106 to 36756 & an One Time Frame move higher with BankNifty hitting the 13th Dec & 24th Nov VPOCs of 37480 & 37807 respectively while making a high of 37862 leaving a Double Distribution Trend Day but left a small responsive selling tail at top to close the day at 37695 and gave the only lower open of the week on Thursday as it tested previous day’s buying singles and filled up the DD profile forming an inside bar both in terms of Value & Range with a prominent POC at 37215. BankNifty resumed the trend of opening higher on Friday as it gave yet another strong start forming a pretty big IB range of 521 points recording new highs for the week at 38119 after which it made the dreaded C side extension giving a marginal new high of 38135 and got rejected from this big supply zone of 22nd Nov back into the initiative buying singles and went on to confirm a FA (Failed Auction) signalling the end of the upmove for the week after which it completed the 1 ATR objective of 37442 while making a low of 37428 but this entry into previous Value was met with rejection seen in the responsive buying tail from 37490 triggering a bounce back to 37835 before closing near the prominent dPOC of 37703 leaving a Neutral Centre Day.
The weekly profile is a trending one to the upside with a huge range of 2608 points with completely higher Value at 36804-37692-38100 and has a zone of singles from 37058 to 36887 in middle which will be the first zone of support below the daily VPOC of 37215 in the coming week apart from the lower daily VPOCs of 36701 & 36397 whereas on the upside, BankNifty will need to take out the 07th Jan SOC of 37921 and negate the daily FA of 38135 to continue the upside probe towards the weekly VPOCs of 38436 & 39408.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 37752 for a rise to 37921 / 38135 / 38241 / 38436 / 38555 / 38712
B) Accepting below 37692, the auction could test 37490 / 37349 / 37215 / 37058 / 36887 / 36701
C) Above 38712, can expect higher levels of 38852 / 39037 / 39244 / 39424 / 36562 / 39661
D) Below 36701, the auction could fall to 36519 / 36374 / 36206 / 36001 / 35856 / 35710
BNF (Weekly Profile) – 37857 [ 38250 / 35650 ]]
BNF opened the week with a freak tick of 36621 but got back into previous week’s range looking to give an ORR (Open Rejection Reverse) start but the downside probe got stopped at 35650 as last Friday’s buyers seemed to be defending their zone as the auction left an initiative tail from 35757 to 35650 and this led to a non-stop relentless move to the upside with the help of 4 extension handles at 35990 / 36161 / 36340 & 36437 which helped the auction not only tag that opening freak tick of 36620 but also hit new highs of 36644 into the close forming a classic Trend Day Up and continued this imbalance over the next 2 days as it made higher highs of 37023 & 37988 almost tagging the Daily Swing High of 37995 from 9th Dec forming an elongated 1138 point Double Distribution Trend Day Up on Wednesday but saw the dPOC shift higher to 37760 indicating profit booking. This fact was further confirmed by the big gap down open on Thursday as BNF tested previous day’s initiative singles from 37200 to 36850 in the A period where the buyers came back & reversed the probe to the upside filling up the DD profile and forming an inside day along with a 3-1-3 profile and continued this imbalance with an Open Drive Up on Friday where it scaled above 37995 & made new highs of the week in the IB at 38250 but the inability to extend any futher followed by a break of VWAP in the D period led to a long liquidation move and coulple of big REs lower as BNF made a low of 37504 taking support just above Thursday’s VWAP of 37497 and giving a pull back to 37952 into the close leaving a Normal Day. The weekly profile is a Trend Up one with a range of 2600 points and completely higher Value at 36920-37800-38240 with the VWAP at 37266 which will be the important reference for this series to continue probing higher.