Nifty Spot Weekly Profile (06th to 10th Dec 2021)
17511 [ 17543 / 16892 ]
Previous week’s report ended with this ‘The weekly profile has formed completely lower Value at 16980-17136-17250 with a close right in the middle and has tails at both ends with a daily VPOC at 17148 & a FA at 17064 which would be the important levels to watch on the downside whereas on the upside the 3 extension handles of Friday will serve as supply points along with the PBH of 17411’
Nifty continued last Friday’s imbalance to the downside with a Trend Day Down on Monday as it left an initiative selling tail in the IB (Initial Balance) from 17183 to 17217 along with 4 extension handles at 17094 / 17034 / 16996 & 16936 to enter previous week’s buying tail of 16931 to 19782 with a close around the day’s low of 16892 but this rare back to back Trend Days Down indicated that the fall was more emotional which resulted in a gap up open on Tuesday where the auction left an initiative buying tail from 17065 to 16987 not only negating all the 4 extension handles of previous profile but went on to make new highs for the week at 17251 after forming a prominent POC at 17167. Wednesday saw another higher open along with a Drive Up as Nifty left another buying tail in the IB and went on to test previous week’s selling tail while making a high of 17485 stalling just below the weekly VPOC of 17490 forming a ‘p’ shape profile for the day with a prominent POC at 17412 and made a hat-trick of gap up opens on Thursday where it tagged 17543 but got rejected back into previous day’s range signalling the end of the upside probe for the week as the auction turned from imbalance to balance mode leaving an inside bar on Friday to end the week with a 3-day composite with Value at 17406-17467-17491 which will be the reference on the downside in the coming week.
The weekly profile is a Neutral Extreme one with a FA (Failed Auction) at 16892 and also represents a DD (Double Distribution) with the mid-profile singles at 17353 to 17243 with overlapping to higher Value at 17172-17469-17543. The weekly FA has completed the 1 ATR objective of 17397 and staying above it can probe towards the 2 ATR target of 17902 in the coming sessions but has immediate supply points at the daily VPOC of 17569, November series VWAP at 17635 & the monthly extension handle of 17688.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 17569 for a probe to 17611 / 17688 / 17745 / 17805 / 17875 / 17961 / 18009 / 18061
B) Accepting below 17491 could lead to a test of 17431 / 17353 / 17309 / 17243 / 17167 / 17101 / 17065 / 16978
NF (Weekly Profile) – 17559 [ 17591 / 16942 ]
NF opened the week with a classic Trend Day Down as it made an almost OH (Open=High) start at 17255 & closed around the lows of 16942 but saw the dPOC shifting lower to 16954 indicating the sellers booking out and trapping the laggard shorts with a gap up on Tuesday where it left an initiative buying tail from 17105 to 17016 and formed an OTF (One Time Frame) probe higher for the day swiping through the weekly Value and making a high of 17308. The auction continued this imbalance with another gap up on Wednesday along with a buying tail from 17390 to 17327 after which it went on to tag the 03rd Dec VPOC of 17408 and scale above previous week’s high of 17515 to tag 17527 forming a ‘p’ shape profile for the day and made it a hat-trick of higher opens on Thursday but got rejected from just below the daily VPOC of 17581 from 25th Nov and confirmed an ORR (Open Rejection Reverse) Down falling by 129 points in the IB (Initial Balance) and continued the probe lower with a C side extension as it hit 17416 but left a responsive buying tail just above previous day’s singles signalling return of demand triggering a fresh probe to the upside and new highs for the week at 17591 with a close right at the dPOC of 17561 leaving a Neutral Centre Day and remained in this range on Friday too forming a nice 3-day composite. The weekly profile is a Neutral Extreme one with mostly higher Value at 17208-17496-17580 stalling just below the weekly HVN & Roll Over Point of 17600 which will be the immediate reference fo the coming week on the upside.
BankNifty Spot Weekly Profile (06th to 10th Dec 2021)
37105 [ 37397 / 35697 ]
Previous week’s report ended with this ‘The weekly profile is a 3-1-3 type forming a nice balance along with tails at both ends but has completely lower Value at 35916-36108-36444 and could lead to a imbalance in the coming session(s)’
BankNifty opened the week with an continuation of the balance it was forming as it remained in the weekly Value for most part of the day on Monday before closing in a spike to the downside which also confirmed a daily FA (Failed Auction) at 36344 along with a NeuX (Neutral Extreme) Day Down while testing the buying singles of previous week as it made a low of 35697 from where it got swiftly rejected giving yet another instance of a NeuX not giving a follow through with a gap up open on Tuesday triggering a trending move higher with the auction leaving an initiative buying tail from 36281 to 36014 and marking the move away from the weekly Value with an extension handle at 36466 after which it went on to make a high of 36820 stalling in the selling singles of last week. Wednesday saw another gap up open as BankNifty made new highs for the week at 37180 in the IB (Initial Balance) and made the dreaded C side extension lower which got rejected resulting in a FA being confrimed at 36905 & a probe higher to 37385 as it tagged the weekly VPOC of 37320 and continued this imbalance to the upside at open on Thursday as it hit 37397 but left an initiative selling tail in the IB which marked the end of the upmove for the week with the auction forming back to back Normal Days and like Nifty, closing the week with a nice 3-day composite with Value at 36913-36998-37167.
The weekly profile looks like a Triple Distribution to the upside with mostly higher Value at 36396-37080-37356 and a close around the HVN of the top most distribution staying above which the PLR (Path of Least Resistance) for the coming week would remain to the upside for a probe towards the monthly HVN of 37440 and the weekly selling tail of 37844 to 38241 whereas on the downside the HVNs of the lower 2 distributions at 36606 & 36098 would be the important references to watch.
Weekly Hypos for Bank Nifty (Spot):
A)BankNifty needs a drive from 37167 for a rise to 37356 / 37476 / 37620 / 37807 / 38021 / 38190 / 38436 / 38555
B) Accepting below 37080, the auction could test 36913 / 36798 / 36603 / 36466 / 36281 / 36098 / 35911 / 35697
BNF (Weekly Profile) – 37246 [ 37500 / 35839 ]
BNF got rejected from the weekly POC of 36464 on the upside at open on Monday and probed lower breaking below the HVN of 36175 in the A period where it made a low of 36011 but left an initiative buying tail in the IB and made an attempt to extend higher at the start of the D period but could only make mariginal new highs of 36489 and this second rejection from the weekly POC triggered a trending move lower for the rest of the day as the auction not only confirmed a FA (Failed Auction) at top but went on to leave an extension handle at 36011 and made a low of 35839 leaving a NeuX (Neutral Extreme) Day Down with a close around the dPOC of 35885 which had shifted lower. This NeuX close was rejected on Tuesday with a gap up plus an OL (Open=Low) start well above the extension handle of 36011 after which it left an initiative buying tail from 36404 to 36100 and made a trending move higher for most part of the day not only negating the FA of 36489 but also leaving an extension handle at 36578 and completed the 2 IB objective of 36950 stopping just below previous week’s high of 36966 where it saw good profit booking by the longs triggering a retracement back to 36700 and a close just above the dPOC of 36720 leaving a ‘p’ shape profile for the day with completely higher Value and followed it up with another big gap up of 300 points on Wednesday as it found acceptance in the 26th Nov selling singles of 37535 to 37055 and confirmed a FA (Failed Auction) at 37006 in the attempt it made to probe lower in the C period forming a NeuX profile to the upside at it tagged the weekly VPOC of 37408 and stopped just below the daily VPOC of 37497 from 25th Nov. Thursday open saw a freak tick of 37590 but BNF was immediately rejected back into previous day’s range as it not only swiped through the Value but almost re-visited the FA of 37006 with a dreaded C side extension where it made a low of 37016 but left a small responsive buying tail at lows indicating that the FA was being defended after which the auction formed a Normal Day and a 3-1-3 profile with a selling tail at top from 37437 to 37500 and closed around the prominent TPO POC of 37225. The auction made another attempt to negate the FA on Friday where it made a low of 36940 in the opening minute but got rejected giving a quick bounce to 37271 and remained locked in this narrow 331 point range for most part of the day after which it made an attempt to make a RE (Range Extension) lower tagging marginal new lows for the day at 36927 but was once again rejected from this zone triggering a late short covering rally into the close as BNF went on to confirm a FA at lows with a brief RE to the upside in the closing minutes as it hit 37296 leaving a Neutral Day and similar to NF forming a nice 3-day balance with a close around the prominent POC of 37233. The weekly profile has mostly higher Value at 36496-37232-37472 and will need fresh demand above the POC to continue higher towards the RollOver point of 37555 and the November series VWAP of 38047 in the coming week.