Nifty Spot Weekly Profile (14th to 18th Jun 2021)
15683 [ 15901 / 15450 ]
Previous week’s report ended with this ‘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’
Nifty opened the week with an Open Drive Down on Monday as it formed a huge 185 point range in the ‘A’ period while making a low of 15606 where it left a buying tail to get back into the weekly Value and completed the 80% Rule with a spike higher into the close as it scaled above 15800 to hit 15823 and continued this imbalance with a gap up on Tuesday mounting above the first weekly objective of 15875 in the IB (Initial Balance) but made the dreaded C side extension where it recorded new ATH (All Time High) of 15901 but could not extend any further ending the day with a Gaussian profile in this year’s narrowest daily range of just 59 points indicating poor trade facilitation at these new highs. The auction then made a move away from Tuesday’s prominent POC of 15885 with an initiative selling tail in the IB on Wednesday confirming that the PLR (Path of Least Resistance) on the larger timeframe has turned lower and even made multiple REs (Range Extension) forming a long liquidation ‘b’ shape profile with a prominent POC at 15792 and made a big gap down open of 120 points on Thursday where it took support in the buying tail of Monday in the ‘A’ period and retraced the entire gap but once again made that dreaded C side extension to 15769 and this rejection from previous Value triggered a fresh leg lower resulting in new lows for the day at 15617 in the ‘K’ period but once again got rejected from Monday’s tail to give a Neutral Centre close at 15691. Nifty opened higher on Friday but confrimed an Open Test Drive Down after hitting 15761 and made a big fall of 192 points in the IB where it made new lows for the week at 15570 and continued this trending move over the next 2 periods as it fell by another 120 points to hit new lows for the month at 15450 but the initiative buying zone of 31st May saw a swift reversal happening as a long responsive buying tail got confirmed from 15528 to 15450 triggering a big short covering rise to 15729 into the close.
The weekly profile is a Neutral Centre one with the range as well as Value extending on both sides forming an outside bar with almost overlapping POC at 15717 with Value at 15609-15717-15825. The daily VPOCs of 15792 & 15885 will be the upside references above 15729 in the coming sessions whereas on the downside, Nifty would remain weak below 15676 with the PBL of 15617 being the important support below which the buying tail of 15528 to 15450 could come into play.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 15729 for a probe to 15792 / 15826 / 15855 / 15885 / 15923 / 15975 / 16008
B) Accepting below 15676 could lead to a test of 15617 / 15566 / 15528 / 15490 / 15439 / 15395 / 15348
NF (Weekly Profile) – 15697 [ 15909 / 15465 ]
Previous week’s report ended with this ‘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’
NF opened lower giving a drive away from the HVN of 15782 as it not only swiped through previous week’s Value but made a low of 15630 in the ‘A’ period taking support at the VAH of the 3-day composite (31st May to 2nd Jun) after which it formed a balance bulding volumes at 15728 for the first half of the day but went on leave a buying extension handle at 15785 spiking higher into the close where it tagged 15848 and continued this imbalance with a gap up open on Tuesday as the auction stayed above the FA of 15856 but settled down into an OAOR leaving one of the narrowest daily range of just 55 points over the last 1.5 years as it made new ATH of 15909 forming a Gaussian profile with a prominent POC at 15881. NF then left a small but important selling tail in the IB on Wednesday from 15868 to 15885 and went on to confirm a multi-day FA 15909 as it continued to probe lower completing the 2 IB objective and closed the day with a spike lower forming a ‘b’ shape long liquidation profile for the day with completely lower Value setting up a probe lower towards the VPOCs of 15728 & 15548 over the next few sessions. Thursday saw the third & biggest gap down of the week of 120 points as the auction completed the 2 ATR objective of 15666 from the FA of 15909 and saw some good profit booking by the shorts along with some new buying coming in at this previous demand zone which led to a trending move higher in the IB (Initial Balance) where it made a high of 15744 and made a good C side extension higher tagging 15777 but this attempt to get back into previous day’s range was rejected with the confirmation of yet another tail at top after which the sellers continued to push lower making new lows for the week at 15626 but was swiftly rejected as it left a tail at lows from 15656 to 15626 leaving a Neutral Centre Day with completely lower Value for the second consecutive day indicating that the PLR remained to the downside. NF opened higher on Friday but got rejected from previous day’s selling tail leading to a late Open Test Drive Down as it fell by more than 300 points till the ‘D’ period as it not only tagged the vPOC of 15548 but went on to revisit the positional reference of 15502 (the FA from 2nd Jun) as it made lows of 15465 stopping right at the buying singles from 31st May where the initial demand for this series was seen. The buying re-emerged in this zone as was visible in the long tail at lows from 15533 to 15465 as the auction reversed the probe to the upside scaling above the VWAP after which it negated the extension handle of 15668 and saw a short covering move to 15731 into the close. The weekly profile is a Neutral Centre one with a FA at top and a buying tail at bottom with this week’s Value forming an outside bar at 15618-15720-15843 and the auction could continue to remain in this range for the coming expiry week with a slight bullish bias above 15728 and would remain weak if sustains below 15618.
BankNifty Spot Weekly Profile (14th to 18th Jun 2021)
34558 [ 35380 / 33909 ]
Previous week’s report ended with this ‘The weekly profile was a trending one to the downside 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′
BankNifty not only opened lower on Monday much below the reference of 35059 but confirmed a Drive Down breaking below previous week’s low and hitting 34374 in the ‘A’ period but saw swift rejection as it left an initiative buying tail in the IB from 34545 to 34374 and went on to retrace the entire day’s fall as it even made marignal new highs of 34995 into the close & continued this imbalance on the upside with an Open Test Drive higher on Tuesday where it scaled above 35059 and made new highs for the week at 35283 in the IB stalling just below previous week’s selling tail reference of 35294 to 35344 and settled down to form a balance and a ‘p’ shape profile for the day with the lone attempt to probe higher was met with rejection at 35317. The auction then made another attempt to negate that selling tail at open on Wednesday and even made a look up above it while making highs of 35380 but left a selling tail at top in the IB which confirmed that the sellers were persistant in this zone and this resulted in a long liquidation ‘b’ shape profile for the day with a prominent POC at 35066 as BankNifty made a low of 34916 and continued the move lower with a gap down on Thursday where it made a low of 34612 in the ‘A’ period and gave a bounce to 34842 in the ‘B’ period and made an attempt to probe higher in the ‘C’ period but was rejected from 34882 in typical fashion as it not only confirmed a FA there but almost completed the 2 ATR objective of 33897 on Friday as it started with another Drive Down getting rejected from previous day’s POC of 34779 and went on to hit new lows for the week at 33909 in the ‘D’ period tagging the weekly VPOC of 33930 (17th to 21st May) and took support exactly at the 1 ATR target from previous week’s high of 35546 confirming the end of the downside probe for the week with a responsive buying tail from 34039 to 33909 which meant the demand was coming back and the auction then probed higher for the rest of the day getting back to 34708 into the close though the Value for the day was completely lower for the third consecutive session.
The weekly profile is once again a trending one lower with rejection at previous supply zone which gave a 1471 point drop as it left a HVN at 35200 and has formed mostly lower Value at 34096-34656-35008 with the close being below this week’s prominent POC which means the PLR continues to remain to the downside for the coming week with the FA of 34882 being the reference on the upside.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 34575 for a rise to 34656 / 34779 / 34882 / 35066 / 35200 / 35328 / 35472
B) Accepting below 34515, the auction could test 34371 / 34280 / 34160 / 34039 / 33908 / 33833 / 33685
Extended Weekly Hypos
C) Above 35472, can expect higher levels of 35546 / 35630 / 35775 / 35853 / 35988 / 36133 / 36233 / 36381
D) Below 33685, the auction could fall to 33560/ 33447 / 33306 / 33200 / 33101 / 32988 / 32839 / 32740
BNF (Weekly Profile) – 35169 [ 35740 / 34757 ]
Previous week’s report ended with this ‘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′
BNF not only opened lower on Monday but gave a big drive down falling by 590 points in the A period as it made new lows for the series at 34455 but it took support in the buying singles of 21st May and left an initiative tail in the IB from 34632 to 34455 getting back above the day’s VWAP which negated the strong bearish open. The auction then formed a balance in a narrow range building volumes at 34758 and moved away from this balance as it not only negated the A period selling tail but went on to make new highs for the day 35130 and continued this strength with an Open Test Drive Up on Tuesday as it tagged the immediate VPOC of 35164 and the selling extension handle of 35275 in the ‘A’ period itself but could not extend much above it as the supply zone 35402 to 35475 came into play resulting in a ‘p’ shape profile for the day with a prominent POC at 35327. Wednesday saw a lower open but BNF took support at 35145 before giving a sharp bounce as it got back above 35327 and hit new highs for the week at 35464 but for the second consecutive day could not take out the supply zone indicating that the sellers were stacking up confirming a small selling tail at top which changed the bias for the day to the downside as it formed a ‘b’ shape long liquidation profile with lows of 35005 with the dPOC also shifting lower to 35109. BNF then opened with a big gap down of 400 points on Thursday but left an OL (Open=Low) start at 34700 after which it probed higher and made a typical C side extension giving new highs of 34970 which got confirmed as a FA (Failed Auction) giving fresh impetus to the sellers as they went on to make a low of 34486 almost tagging the 1 ATR objective from the FA before giving a bounce back to 34763 into the close and continued this imbalance with a higher open on Friday but gave an Open Test Drive from previous day’s HVN of 34840 and trended lower till the ‘D’ period as it got into the buying singles of 21st May and completed the 2 ATR target of 33945 from the FA of 34970 and having achieved this major objective in double quick time saw some profit booking along with new buying coming in resulting in an responsive buying tail from 34075 to 33937 which changed the PLR of the day to the upside as BNF first built volumes at 34260 and then went on to get into the IB singles spiking to 34718 into the close leaving a 3-1-3 profile for the day. The weekly profile first formed a HVN at 35329 from where it moved away forming mostly lower Value at 34097-34741-35077 before closing at the lower HVN of 34600 which will be the immediate level to watch in the coming week along with the buying tail of 34095 to 33937 where as on the upside the immediate zone would be from 34718 to 34838 and above it, the FA of 34970.