Nifty Spot Weekly Profile (07th to 11th Jun 2021)
15799 [ 15835 / 15567 ]
Previous week’s report ended with this ‘The weekly profile represents a ‘p’ shape with completely higher Value at 15530-15650-15700 and apart from the POC of 15650 has 2 other prominent HVNs at 15571 & 15500 which would be the important references on the downside whereas sustaining above 15733, Nifty could continue the probe higher towards 15875 & 16008 in the coming week’
Nifty opened higher on Monday but could not get above 15733 as it remained in a narrow IB (Initial Balance) range of just 50 points but formed similar lows of 15678 indicating exhaution on the downside after which it formed a balance till the ‘H’ period and confirmed a late extension handle at 15739 in the ‘I’ period to give a move to 15773 and continued this imbalance at open on Tuesday with a marginal new high of 15779 but could not sustain as it probed lower in the IB to 15680 once again stopping at previous day’s similar lows and remained in this 99 point range all day forming a 3-1-3 Gaussian profile. Wednesday saw an open in the upper singles of previous day’s profile as Nifty got rejected from the test of Tuesday’s POC and went on to hit new highs of 15793 in the IB leaving an initiative buying tail from 15768 to 15723. However, the auction displayed poor trade facilitation at these new highs as it remained in a very narrow range of 25 points till the ‘F’ period building the POC at 15777 and attempted to extend higher in the ‘G’ period as it hit 15800 but was swiftly rejected and this failed RE (Range Extension) set up a huge long liquidation move from the ‘H’ period onwards as Nifty not only made new lows for the day confirming a FA (Failed Auction) at the new ATH but went on to make new lows for the week as well trending lower till the ‘L’ period where it made a low of 15567 stopping the fall right at the prominent weekly HVN of 15571 marking the end of the downside probe. A bounce back to 15654 into the close on Wednesday and the subsequent gap up open on Thursday confirmed the reversal of the PLR (Path of Least Resistance) to the upside as Nifty formed a ‘p’ shape profile with multiple REs filling up the low volume zone of Wednesday as it made a high of 15751 and closed just above the dPOC of 15730. Friday saw the fifth consecutive higher open of the week which was also the biggest one as the auction negated the FA of 15800 and hit new highs of 15835 in the ‘A’ period but settled down into an OAOR (Open Auction Out of Range) forming another narrow range IB of just 54 points and the inability to extend higher led to a RE on the downside in the ‘F’ period where Nifty took support right at PDH (Previous Day High) and settled down to form a balance for the rest of the day building a prominent POC at 15801 and even closing right there.
The weekly profile remained in a relatively narrow range of 269 points forming a nice balance in spite of being Neutral Extreme with mostly higher Value at 15684-15726-15786 and could fill up the low volume zone between 15800 to 15730 if fails to sustain above 15800 in the coming week whereas on the upside, the probe towards 15875 & 16008 would be on.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 15813 for a probe to 15847 / 15876 / 15932 / 15975 / 16008 / 16065 / 16099
B) Accepting below 15800 could lead to a test of 15757 / 15724 / 15684 / 15635 / 15571 / 15530 / 15490
NF (Weekly Profile) – 15817 [ 15856 / 15760 ]
NF opened higher but could not sustain above the FA point of 15756 triggering a probe lower in the ‘A’ period where it took support right above the yPOC of 15704 and formed a narrow range balance within the IB for the first half of the day before leaving a pretty late extension handle at 15773 as it went on to complete the 2ATR objective of 15793 from the 2nd Jun’s FA of 15502 while making a high of 15808 before closing the day right at the dPOC of 15785. Tuesday saw a drive down from 15783 as it negated the extension handle of 15773 and formed the second largest IB range of the series of 86 points breaking below the VPOC of 15704 briefly but could only manage a marginal new low of 15701 leaving a small but important rejection at lows after which it made a slow probe higher all day and even made marginal new highs of 15790 forming a Gaussian profile and a Normal Day with almost overlapping Value & POC. NF had the most action packed day of the week on Wednesday as it opened around the 2-day composite VAH of 15788 and swiped lower through previous Value taking support right at VAL of 15735 from where it not only gave a quick bounce but went on to make multiple REs higher in the ‘E’ & ‘G’ periods hitting new marginal new highs for the series at 15815 but could not find fresh demand as it left a small tail at top and the break of the day’s VWAP led to a huge liquidation move as the auction not only left a selling extension handle at 15735 confirming a FA at top but went on to complete the 3 IB objective of the day of 15602 as it made a low of 15594 stopping the fall just above the buying extension handle of 15588 from 2nd June forming an outside bar and a Neutral Day with the dPOC shifting lower to 15666 indicating that the sellers had all but booked out. NF then opened above the yPOC of 15666 on Thursday and left an initiative buying tail in the IB from 15700 to 15657 after which it made a slow probe higher negating the selling extension handle of 15735 and forming a ‘p’ shape profile for the day as it made a high of 15768 and continued this imbalance on Friday with a gap up open which negated the FA of 15815 but then settled down into a narrow range of 54 points after making new highs for the week at 15845 in the IB. The auction then made an attempt to extend the range to the upside in the ‘D’ period but got swiftly rejected resulting in an immediate break of VWAP in the ‘E’ period followed by an extension lower in the ‘F’ period confirming yet another daily FA at new highs of 15856 as NF made a low of 15760 stopping just above previous day’s range and giving a bounce back to 15831 as it confirmed a Neutral Centre Day. The weekly profile has formed a nice balance with mostly higher Value at 15706-15802 and has a prominent POC at 15742 which would act as a magnet in the coming week if the FA of 15856 is not negated with the immediate reference being the HVN of 15782 on the downside.
BankNifty Spot Weekly Profile (07th to 11th Jun 2021)
35047 [ 35546 / 34641 ]
Previous week’s report ended with this ‘The weekly profile has an initiative buying tail from 35070 to 34930 but has formed a nice Gaussian Curve in a narrow range over the 5 days with completely higher Value at 35190-35340-35550 as the auction even managed to tag the weekly VPOC of 35715 but will need to sustain above it in the coming week and negate the selling singles till 35988 from 12th Mar to be able to continue higher towards the VPOC of 36233 and the higher extension handle of 36504′
BankNifty opened just above previous week’s prominent POC of 35340 on Monday and made an attempt to probe higher after the narrow 157 point range in the IB (Initial Balance) with the help of multiple Range Extensions but struggled to extend by much as it stalled just below the weekly VAH of 35550 and formed a Gaussian Profile for the day with a close around the day’s prominent POC of 35472. The auction then made it’s intention clear with a Drive Down on Tuesday from just below 35472 confirming a weekly FA at 35546 as it swiped through prevous week’s Value & the buying singles of 35070 to 34930 while making a low of 34962 forming a ‘b’ shape profile and continued the probe to the downside at open on Wednesday where it made new lows for the week at 34908 in the ‘A’ period but was swiftly rejected trapping the late shorts confirming an ORR (Open Rejection Reverse) and resulting in a huge 494 point IB as BankNifty tested previous day’s initiative selling tail but could not scale above it and in the process left a fresh selling tail at top indicating that the initaitive sellers were back defending their zone. This fight between 2 strong opposite parties continued till the ‘G’ period as the auction was forming a ‘p’ shape profile for the day but the supply gained complete control in the ‘H’ period forcing all the longs to liquidate negating the strong open and leading to new lows being hit at 34641 in the ‘I’ period after which it formed a balance in the lower part of the day’s profile leaving similar lows of 34647 in the ‘L’ period which meant exhaustion towards the downside that too at the VAL of the 4-day composite from 24th to 27th May (Link given below). BankNifty continued to form the balance on Thursday as it remained in the lower part of previous day’s profile building the POC at 34888 before giving a late RE to the upside in the ‘I’ period and spiking higher into the close as it not only made a high of 35165 but continued this imbalance with a gap up open on Friday with a tag of 35344 but confirmed the change of polarity around previous week’s POC as it formed a small initiative selling tail in the IB. The auction then made an OTF (One Time Frame) move to the downside till the ‘F’ period even leaving an extension handle at 35151 as it went on to make a low of 34891 stopping just above Thursday’s POC of 34888 and formed a ‘b’ shape profile for the day with a close around the prominent POC of 35059.
The weekly profile was a trending one to the downside in the first half with mostly lower Value at 34784-35072-35248 and could continue lower if it sustains below 35059 in the coming week with the VPOC of 34888 & composite VAL of 34637 being the important levels to watch on the downside where as acceptance above the extension handle of 35151 could lead to a test of the selling tail of 35294 to 35344 along with the daily VPOC of 35472 & the weekly FA of 35546.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 35063 for a rise to 35160 / 35294 / 35443 / 35546 / 35630 / 35775 / 35853
B) Accepting below 35059, the auction could test 34970 / 34888 / 34783 / 34690 / 34530 / 34410 / 34300
Extended Weekly Hypos
C) Above 35853, can expect higher levels of 35988 / 36133 / 36233 / 36381 / 36504 / 36655 / 36756 / 36961
D) Below 34300, the auction could fall to 34156 / 34062 / 33930 / 33833 / 33685 / 33447 / 33200 / 33101
BNF (Weekly Profile) – 35169 [ 35740 / 34757 ]
BNF opened the week slightly higher and even probed above previous week’s Value as it made multiple RE’s to hit 35740 but displayed very poor trade facilitation forming a Normal Day in a very narrow range of just 246 points and leaving a prominent POC at 35649. Tuesday then saw the auction opening lower and confirming a Drive Down as it left a 395 point range IB and even made couple of REs lower in the ‘C’ & ‘F’ periods to tag 35123 but took support in the buying singles of 31st May and gave a bounce back to 35380 before settling down to close the day right at the dPOC of 35253 leaving a ‘b’ shape long liquidation profile and resumed this downside move at open on Wednesday where it formed new lows for the series at 35062 but was swiftly rejected confirming an ORR to the upside and this inturn led to a big move of 485 points in the IB with BNF making a high of 35547 but the failure to extend the range to the upside in spite of the strong open meant that the previous day’s initiative sellers were still active and the break of VWAP late in the day completely changed the character of the auction as it not only negated the entire buying tail of morning but went on to tag the weekly VPOC of 34990 & the HVN of 34815 while making a low of 34758 stopping right at the POC of 21st May from where it gave a bounce to 35171 before closing right at the dPOC of 34930. The auction then filled up the low volume zone on Thursday for most part of the day before giving break out on the upside leaving an extension handle at 35068 and hitting a high of 35320 and continued this imbalance with a gap up on Friday as BNF revisited Wednesday’s SOC (Scene of Crime) of 35460 but got rejected leaving an initiative selling tail in the IB and gave a trending move lower for the first half of the day as it left an extension handle at 35275 and negated the previous day’s buying extension handle of 35068 and made a low of 34977 signalling the end of the downside probe and gave a bounce back to 35259 before closing the day at the prominent dPOC of 35164. The weekly profile has formed slightly lower Value at 34910-35235-35370 and the PLR (Path of Least Resistance) could continue to be lower in the coming week if BNF is unable to negate the immediate extension handle of 35274.