Nifty Spot Weekly Profile (09th to 13th May 2022)
15782 [ 16404 / 15735 ]
Previous week’s report ended with this ‘The weekly profile as expected has given a move away from the 2-week balance & is a Neutral Extreme one to the downside with overlapping to lower Value at 16674-16998-17070 with a big zone of selling singles from 16651 to 16482 which will be the immediate reference on the upside for the coming week where as on the downside, sustaining below 16382 could give a further probe down to 16249, 16006 & 15769 for the month of May 2022’
Nifty opened the week with a gap down of 183 points continuing the imbalance to the downside & repairing the poor lows of last week as it broke below the first major downside objective of 16249 but was swiftly rejected from 16142 leaving an initiative buying tail from 16185 to 16142 which triggered a good short covering bounce for the day as the auction left similar highs of 16401 & 16403 indicating exhaustion & formed a ‘p’ shape profile for the day suggesting that it needs fresh demand to continue higher.
Tuesday saw another attempt being made by Nifty to repair the poor highs of Monday but once again it could only manage a marginal new tick of 16404 showing the inability to scale above last Friday’s prominent Neutral Centre TPO POC which in turn triggered a liquidation move down to 16197 into the close & a Neutral Extreme Day Down which did not give a follow up at open on Wednesday but the gap up stalled just below Tuesday’s prominent NeuX POC of 16325 confirming an ORR (Open Rejection Reverse) start as the sellers re-gained complete control which was seen in the initiative selling tail from 16233 to 16319 after which Nifty not only negated the Monday’s buying singles but went on to make new lows for the week at 15992 confirming another weekly FA (Failed Auction) at 16404 but saw a short covering bounce late in the day to 16224 as it formed a ‘b’ shape profile with a prominent POC at 16125.
The auction then opened with yet another big gap down of almost 150 points on Thursday and continued to trend lower for the first part of the day as it broke below the second weekly objective of 16006 while making a low of 15848 in the A period and following it up with multiple REs till the K TPO as it tagged the 8th Mar daily VPOC of 15808 and hit the third & final weekly objective of 15769 while making a low of 15735 stalling just above the 1 ATR target of 15728 from the weekly FA of 16404. All the objectives being met for the week then led to a big gap up on Friday of 169 points as Nifty got accepted in previous day’s selling singles in the IB and the attempt to probe lower was swiftly rejected with a typical C side extension which triggered an OTF (One Time Frame) move higher till the I period where it made a high of 16083 and stalled right at the VAL of 11th May and this failure of the buyers to push further triggered a big liquidation drop from the J TPO onwards resulting in an extension handle at 15886 & a swipe through Thursday’s Value as it made a low of 15741 giving a Neutral Extreme (NeuX) Day Down.
The weekly profile is a Neutral Extreme & Trending One to the downside with a FA at 16404 & completely lower Value at 15984-16308-16392 with a close around the lows so Friday’s NeuX zone of 15741 to 15837 will be the immediate zone to watch in the coming week along with the extension handle of 15886 sustaining above which the auction could fill up the zone upto this week’s POC of 16308 where on the downside the old weekly come monthly FA of 15671 will be the important level to hold breaking of which could start a probe to 15451 & 15210.
Click here to view this week’s auction in Nifty with respect to the previous week on MPLite
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 15791 for a probe to 15837 / 15886 / 15952 / 16040 / 16125 / 16183
B) Accepting below 15750 could lead to a test of 15671 / 15632 / 15550 / 15504 / 15451 / 15395
Extended Hypos:
C) Above 16183, can expect higher levels of 16233 / 16276 / 16325 / 16382 / 16441 / 16484 / 16535
D) Below 15395, the auction could fall to 15348 / 15295 / 15210 / 15172 / 15137 / 15090 / 15040
NF (Weekly Profile) – 15786 [ 16418 / 15733 ]
NF remained below the HVN of 16432 and started the week with a 2-day balance forming a prominent POC at 16327 and gave an initiative move away from here on Wednesday where it made new lows of the week at 15993 & continued this imbalance with a further drop to 15733 on Thursday completing a 685 point drop from Monday’s high of 16418. The auction opened higher on Friday and left a typical C side extension down resulting in a FA (Failed Auction) at 15890 as it made a trending move higher till it formed similar highs of 16086 & 16091 indicating exhaustion on the upside as the sellers came back aggressively to trigger a massive liquidation drop as NF left couple of extensions handles at 15890 & 15826 and went on to make a low of 15744 leaving a Neutral Extreme Day Down. The weekly profile is a Trend Down One with completely lower Value at 15981-16320-16389 with this week’s VWAP of 16097 being the important reference on the upside for the coming session(s).
BankNifty Spot Weekly Profile (09th to 13th May 2022)
33121 [ 34793 / 33008 ]
Previous week’s report ended with this ‘The weekly profile is a Neutral Extreme one to the downside which also looks like a DD (Double Distribution) with the first 3 days of the week forming the upper distribution with a prominent POC at 35904 and a zone of singles from 35134 to 34776 separating the lower distribution of Friday. Value for the week was overlapping to lower at 35244-35904-36216’
BankNifty opened the week with a 500 point gap down but showed some buying strength as it left an initiative buying tail from 33981 to 33927 and probed higher getting back into last Friday’s range and making a high of 34554 stalling just below the yPOC of 34579 indicating supply coming back which resulted in a close near the day’s prominent POC of 34306. The auction opened lower on Tuesday but once again left a buying tail in the IB (Initial Balance) and went on to make a trending move higher for most part of the day as it scaled above 34579 and went on to test last week’s mid-profile selling singles from 34776 to 35134 but got swiftly rejected from 34782 triggering a fast paced liquidation break to 34412 into the close.
Wednesday saw a higher open which was once again rejected from 34727 as BankNifty left an initiative selling tail till 34600 which turned the PLR (Path of Least Resistance) for the day to the downside resulting in break of Tuesday’s buying tail and a low of 34143 where the auction left a responsive buying tail and this return of some demand triggered a massive short covering move into the close as the auction made new highs for the week at 34793 leaving a Neutral Extreme (NeuX) Day Up. NeuX profile are notorious for not giving a follow up & another example of this was seen on Thursday which opened with a gap down below Thursday’s IBL of 34406 thus confirming a multi-day FA at 34793 which was a known supply zone from previous week as sellers took complete control & drove the auction down not only tagging the 2 ATR objective of 33560 from 34793 but completing a 1000 point fall by making a low of 33298 and left a small responsive tail at lows indicating profit booking with a close at 33532.
Friday open saw more pain for the late sellers of Thursday by opening with a big gap up of almost 400 points which served as an invitation for the initiative sellers to get back as they drove the auction down to 35576 in the IB but the dreaded C side extension to 35554 triggered another round of short covering rally with BankNifty making a RE to the upside in the I period hitting new highs for the day at 34002 confirming a FA at lows but this extension too was swiftly rejected back as the auction confirmed a fresh FA at the top and left an extension handle at 33525 to make a big drop of over 500 points into the close as it hit 33008 leaving a Neutral Extreme Day Down.
The weekly profile also is a Neutral Extreme One to the downside with completely lower Value at 33816-34332-34752 and has another TPO HVN lower at 33773 which will be the reference on the upside above Friday’s NeuX zone of 33248 to 33008 and that day’s mid-profile selling singles of 33334 to 33525 whereas on the downside, BankNifty will remain weak below 33052 for a probe towards the 8th Mar daily VPOC of 32550 & the 52 week low from 14th May 2021 of 32115.
Weekly Hypos for BankNifty (Spot):
A) BankNifty needs a drive from 33125 for a rise to 33248 / 33429 / 33557 / 33773 / 33962 / 34175
B) Accepting below 33052, the auction could test 32872 / 32697 / 32550 / 32412 / 32172 / 32062
Extended Hypos:
C) Above 34175, can expect higher levels of 34305 / 34476 / 34656 / 34793 / 34901 / 35133 / 35287
D) Below Below 32062, the auction could fall to 31906 / 31722 / 31545 / 31411 / 31216 / 31074 / 30955
BNF (Weekly Profile) – 33136 [ 34817 / 33025 ]
BNF opened the week with a 427 point gap down on Monday and made a low of 33957 in the A period but left an initiative buying tail in the IB which signalled return of demand & reversed the probe to the upside as it went on to test previous week’s mid-profile selling singles of 34813 to 35161 but got stalled at 34817 on Tuesday. The auction continued to remain in this 3-day balance on Wednesday forming a Neutral Day as it made a spike higher to 34797 into the close leaving signs that it was getting ready for a fresh imbalance which came in the form of a gap down along with an ORR (Open Rejection Reverse) on Thursday as BNF confirmed a multi-day FA at 34797 & went on to complete the 2 ATR objective of 33527 while making a low of 33307. Friday then saw a bounce coming in form of a gap up but the attempt to probe higher resulted in a new FA being confirmed at 34023 which resulted in a big liquidation move of almost 700 points into the close and new lows for the week at 33025 leaving another Neutral Extreme Weekly profile to the downside with completely lower Value at 33816-34648-34768 and this week’s VWAP of 34146 will be an important positional reference for the rest of the series.
