Nifty Spot Weekly Profile (04th to 08th Oct 2021)
17895 [ 17942 / 17581 ]
Previous week’s report ended with this ‘Nifty formed a Triple Distribution Trend Down profile for the week with the range being completely inside previous week’s profile as the auction filled up the low volume zone and left 3 prominent HVNs at 17848, 17643 & 17518 along with a daily FA at 17742 on 30th Sep. This week’s Value was overlapping to higher at 17589-17643-17859’
Nifty opened with a big gap up on Monday as it not only got back into previous week’s Value but left an initiative buying tail in the IB (Initial Balance) from 17651 to 17581 and formed a ‘p’ shape short covering profile for the day with a prominent POC at 17695 and continued to form a balance around this POC for the first half on Tuesday also after which it gave a trending move away to the upside from the ‘G’ period onwards where it left an extension handle at 17709 and went on to hit 17833 into the close. The auction continued this imbalance with a gap up open on Wednesday but the move above the weekly VAH of 17859 was swiftly rejected as it made a high of 17884 and this ORR (Open Rejection Reverse) triggered a fall of 271 points testing the initiative buying tail from Monday. Thursday saw a massive gap up open of 164 points as Nifty consolidated in a narrow range of just 94 points stalling just below the weekly VAH of 17859 as it formed a prominent POC at 17806 and made it a hat-trick of gap up opens on Friday where it continued to probe higher in the IB and even made a good C side extension hitting new highs of 17942 but could not get above the similar highs of previous 2 weeks and formed a perfect Gaussian Curve on the daily which included a failed attempt to make a RE lower in the G period as the auction confirmed a FA at 17840 and closed right at the prominent dPOC of 17898.
The weekly profile was a trending one to the upside though has formed inside range & value with a small buying tail at lows and 2 prominent HVNs at 17694 & 17806 which will be the levels to watch on the downside whereas the ability to sustain above this week’s Value of 17646-17694-17844 could give a probable move to 18028 / 18100 & 18216.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 17908 for a probe to 17950 / 18028 / 18075 / 18115 / 18150 / 18180 / 18216
B) Accepting below 17884 could lead to a test of 17840 / 17806 / 17765 / 17728 / 17694 / 17636 / 17574
NF (Weekly Profile) – 17900 [ 17940 / 17560 ]
NF did the opposite of previous week as it not only opened with a gap up on Monday but left an initiative buying tail in the IB but could only form a ‘p’ shape profile with a prominent HVN at 17709 and followed it up with a Trend Day Up on Tuesday after leaving an extension handle at 17700 but saw good profit booking coming into the close as the dPOC shifted higher to 17830. Wednesday saw an Open Auction start as NF remained in a narrow range of just 53 points in the IB continuing to build volumes around 17830 and made a quick & big C side extension lower to 17762 which was swiftly rejected triggering a short covering move higher eventually resulting in a RE to the upside in the G period which got immediately abandoned resulting in a FA being confirmed at 17865 and a huge drop of 262 points as it made a low of 17603 stalling in Monday’s initiative singles leaving a Neutral Extreme (NeuX) Day Down. NeuX do not give a follow through most of the times & Thursday was no different as the auction opened with a big gap up of 145 points catching the late sellers of previous day off-guard re-visiting the FA and gave way to another ‘p’ shape profile with a prominent POC at 17818. NF opened higher yet again on Friday and hit new highs for the week at 17898 in the IB and continued the probe higher with a big C side extension to 17940 as it got into the selling singles from 28th Sep but could not extend any further leading to a balance being formed for the rest of the day showing up as a nice Gaussian Curve on the daily with a close right at the prominent POC of 17899. The weekly profile has formed inside Value at 17682-17820-17883 and it remains to be seen if it moves away from this balance in the coming week.
BankNifty Spot Weekly Profile (04th to 08th Oct 2021)
37775 [ 38107 / 37355 ]
Previous week’s report ended with this ‘The weekly profile resembles a Triple Distribution profile with overlapping to higher Value at 37392-37632-38148 and 2 daily VPOCs at 37726 & 38135 which will be the important references on the upside in the coming week’
BankNifty opened with a gap up of 166 points on Monday and formed a ‘p’ shape short covering profile as it left an initiative buying tail from 37474 to 37355 and went on to make a high of 37671 before closing right at the prominent dPOC pf 37577. The auction then formed Value in the buying singles in the first half on Tuesday before giving a move away on the upside with the help of an extension handle at 37546 in the ‘H’ period resulting in new highs of the week at 37786 and continued this imbalance to the upside on Wednesday with a pretty large IB range of 389 points where it made a high of 38031 and made couple of attempts to extend the range to the upside in the ‘F’ & ‘G’ TPOs but could only manage 38107 stalling just below the 28th Sep VPOC of 38135 and not only that but went on to confirm a FA (Failed Auction) at highs which triggered a big fall to 37452 as day ended as a Neutral Extreme (NeuX) Down profile closing just below the 1 ATR objective of 37526 from the FA. NeuX are notorius for not giving a follow through and the Thursday open with a 372 point gap up gave proof of this fact but got stuck in a very narrow 196 points range in the IB after it and the attempt to extend the range in both directions failed as BankNifty formed a Neutral Centre Day with a prominent dPOC at 37766. Friday open started with a move away from this POC to the upside as the auction went on to climb above PDH (Previous Day High) in the IB and continued the upmove with a good C side extension making a high of 38105 almost re-visiting the FA of Tuesday but the inability to scale above it led to a liquidation move over the next 4 periods and a RE (Range Extension) to the downside in the G TPO where it made a low of 37674 taking support just above PDL and leaving similar lows of 37680 & 37686 in the next 2 TPOs confirming that fresh supply was missing which led to a pull back to 37844 into the close leaving a second successive Neutral Centre Day with completely overlapping Value & POC and looks set to give a move away from here.
The weekly range & value was both inside previous one at 37584-37752-37968 and BankNifty has formed overlapping POC on the weekly timeframe around 37750 for the last 3 weeks now with the daily VPOC of 38135 & the FA of 38107 showing supply at higher levels and will have to be taken out for an upside imbalance to begin towards the ATH of 38377 whereas on the downside, 37625 & 37378 would be the immediate references to watch below which the daily VPOC of 37149 could come into play.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 37868 for a rise to 38031 / 38135 / 38213 / 38377 / 38482 / 38610 / 38809
B) Accepting below 37735, the auction could test 37625 / 37455 / 37309 / 37149 / 37051 / 36987 / 36876
Extended Weekly Hypos
C) Above 38809, can expect higher levels of 38910 / 39051 / 39201 / 39333 / 39464 / 39601 / 39781 / 39903
D) Below 36876, the auction could fall to 36669 / 36504 / 36390 / 36188 / 36048 / 35966 / 35868 / 35725
BNF (Weekly Profile) – 37917 [ 38200 / 37445 ]
BNF opened higher on Monday and got back into previous week’s Value forming a ‘p’ shape profile on the daily with a prominent POC at 37700 and formed Value in the buying singles of 37594 to 37445 in the first half on Tuesday as it built volumes at 37564 and gave an initiative move away in the second half forming a Double Distribution Trend Day Up which saw the dPOC shifting higher to 37864 into the close. The auction continued this upmove in the IB on Wednesday as it formed a big range of 400 points making new highs for the week at 38150 and made an attempt to extend higher in the F & G periods but got rejected from 38190 triggering a big fall as it left an extension handle at 37750 confirming a FA at highs and went on to complete the 1 ATR objective of 37581 while making a low of 37560 forming a Neutral Extreme Day Down. BNF rejected the previous close as it opened well above the extension handle of 37750 on Thursday but remained in a narrow range all day with failed attemps to break both sides as it formed a Neutral Centre profile with a prominent POC at 37895 and moved away from here at open on Friday with an upside probe in the IB which was followed by a big range extension in the C period as the auction hit 38200 and in the process re-visited the FA of 38190 but left a responsive selling tail indicating supply coming back in this zone which led to a downside probe to 37788 before giving the second consecutive Neutral Centre Day with completely overlapping Value. The weekly profile was completely inside previous range with Value also forming an inside bar at 37710-37874-38106 and could give a move away from this multi-week balance in the coming session(s).