Nifty Spot Weekly Profile (16th to 20th Aug 2021)
16450 [ 16702 / 16376 ]
Previous week’s report ended with this ‘The weekly profile has mostly inside Value at 16212-16260-16356 because of the fact that it was in a balance for the majority of the time and has left a buying extension handle at 16375 along with a zone of singles till 16426 which would be the support zone for the coming week below the Trend Day’s PBL (Pull Back Low) of 16468 which is the immediate reference on the downside whereas staying above 16549, the upside imbalance could continue even further towards 16694 & 16755’
Nifty made an OAIR (Open Auction In Range) start indicating that the Trend Day imbalance of last Friday was turning into a balance as it left a narrow 109 point range for the day taking support above the PBH of 16468 and making new ATH (All Time High) of 16589 forming a ‘p’ shape profile with a prominent POC at 16560 and continued this balance on Tuesday where it tagged marginal new highs of 16591 at the open but could not sustain after which it remained largely in previous day’s range and even made an attempt to extend lower in the ‘F’ & ‘G’ periods where it formed similar lows of 16495 signalling exhaustion on the downside. The auction then spiked higher to 16628 into the close as it left an extension handle at 16591 leaving a NeuX (Neutral Extreme) Day and gave a rare follow up to a NeuX profile with a big gap up on Wednesday but settled into an OAOR as it tagged the first weekly objective of 16694 in the IB (Initial Balance) while forming a narrow 42 point range after which it made the dreaded C side extension higher to hit 16702 but was swiftly rejected back leading to a big liquidation break as Nifty not only confirmed a FA (Failed Auction) at new highs of 16702 but went on to complete the 1 ATR objective of 16563 while making a low of 16536 for the day leaving successive NeuX Days but this time it was to the downside. Nifty gave yet another follow up to a NeuX profile on Friday with a huge gap down of 186 points as it opened in previous week’s singles of 16426 to 16375 and took support right above the buying extension handle as it made a low of 16376 and left a small buying tail indicating previous buyers defending this zone after which it formed a Normal Day building Value in the low volume zone till 16480 along with a prominent POC at 16469.
The weekly profile is a Neutral Extreme one to the downside though Value for the week was completely higher at 16458-16566-16590 and Friday’s POC of 16469 will be the immediate reference on the upside above which this week’s prominent POC of 16566 will be the level to watch apart from the daily FA of 16702 whereas on the downside, Nifty would get weaker below 16375 for a probe towards the weekly VPOC of 16260 & the weekly FA of 16162 in the coming days.
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 16469 for a probe to 16513 / 16566 / 16600 / 16639 / 16681 / 16710 / 16755
B) Accepting below 16430 could lead to a test of 16375 / 16348 / 16308 / 16256 / 16228 / 16171 / 16130
NF (Weekly Profile) – 16434 [ 16689 / 16370 ]
NF opened lower on Monday but took support at last Friday’s VWAP of 16466 indicating that the buyers were still present and this led to a slow probe higher towards new ATH of 16588 after which it remained in the same range on Tuesday forming a 2-day balance before giving a spike higher to 16610 into the close and leaving the first of the NeuX (Neutral Extreme) Days of the week. The auction gave a rare follow up to the NeuX in form of a gap up on Wednesday where it marked new highs of 16680 in the IB but settled down into an OAOR forming a very narrow 38 point range in the first hour which led to the dreaded C side extension to marginal new highs of 16689 but could not sustain and not only got back into the IB but made multiple REs (Range Extension) to the downside confirming a FA (Failed Auction) at the top and with it a short term reversal as the sellers took control as they not only completed the 3 IB objective for the day by hitting 16565 but went on to make a low of 16547 stalling right at the NeuX VWAP of previous session leaving a second successive NeuX Day and continued the imbalance with a huge gap down of 172 points on Friday as NF got into previous week’s singles of 16419 to 16359 and took support there forming a Normal Day with a prominent POC at 16455. The weekly profile is a Neutral Extreme Down one with completely higher Value at 16446-16548-16584 and the immediate reference for the coming week would be the NeuX zone of 16462 to 16370 with the weekly VPOC of 16266 being the lower level to watch and this week’s prominent POC of 16548 marking the upside along with a daily extension handle at 16610.
BankNifty Spot Weekly Profile (16th to 20th Aug 2021)
35034 [ 36261 / 34926 ]
Previous week’s report ended with this ‘The weekly profile is a Neutral Centre and a well balanced one with completely inside Value at 35784-36024-36144 with BankNifty recording the highest ever weekly close at 36169 so looks good for more upside in the coming week with probable objectives of 36437 & 36825 provided it sustains above 36160‘
BankNifty opened slightly lower on Monday but took support just above previous week’s POC of 36024 as it made a low of 36032 and reversed the probe to the upside from there scaling above 36160 and making a look up above last Friday’s high of 36233 as it hit 36261 but could not sustain leaving a tail at both ends in the IB (Initial Balance). The auction then remained inside the narrow IB range of 229 points all day with 2 failed attempts to negate the selling tail as it made similar highs of 36226 in the ‘D’ & ‘E’ periods clearly showing lack of demand as it closed around the lower end of the day’s Value and well below the prominent POC of 36127 indicating that the PLR (Path of Least Resistance) was to the downside and gave more confirmation of this on Tuesday where it not only opened with a gap down but swiped through previous week’s value in the IB negating the daily FA of 35937 while making a low of 35720 and even made a big RE (Range Extension) to the downside in the ‘F’ period tagging 35612 which marked the end of the imbalance for the day closing as a ‘b’ shape profile which meant no new agressive selling came at the lower levels and the laggards which did come were forced to exit in the big gap up open of 355 points on Wednesday as BankNifty opened higher and hit 36249 but confirmed a Drive Down and this resulted in a Trend Day Down as it engulfed the last 10-day range and completed the downside 1 ATR objective of 35437 from the negated FA of 35937 while making a low of 35432. This imbalance to the downside continued with a big gap down of 408 points on Friday as the auction continued to probe lower and took support right at the 03rd Aug extension handle of 34980 in the IB after which it remained in a narrow range forming a balance for most part of the day and failed in the multiple attempts to extend lower as it made marignal new lows of 34949 & 34926 in the ‘D’ & ‘J’ periods which also marked the 2 ATR target of 34937 from last Friday’s negated FA.
The weekly profile is a trending one to the downside with completely overlapping Value at 35497-36113-36225 and has selling singles in the lower part from 35285 to 35432 which would be the first zone of supply for the coming session(s) apart from the daily VPOC of 36024 from 18th Aug if BankNifty gets accepted above Friday’s prominent POC of 35080 whereas on the downside, the weekly HVN of 34800 & the weekly POC of 34566 would be the important levels on watch below which the auction could test the responsive buying tail from 34220 to 34115 of 28th Jul which will also coincide with the 1 ATR objective of the negated weekly FA of 35531.
Click here to view this week’s auction in BankNifty with respect to previous week’s profile on MPLite
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 35080 for a rise to 35184 / 35285 / 35432 / 35531 / 35649 / 35788 / 35868
B) Accepting below 34960, the auction could test 34861 / 34774 / 34690 / 34570 / 34450 / 34348 / 34220
Extended Weekly Hypos
C) Above 35868, can expect higher levels of 35983 / 36074 / 36175 / 36283 / 36381 / 36504 / 36655 / 36756
D) Below 34220, the auction could fall to 34115 / 34039 / 33907 / 33811 / 33691 / 33560 / 33447 / 33306
BNF (Weekly Profile) – 35063 [ 36296 / 34902 ]
BNF moved away from last week’s balance to an imbalance this week forming a Trending profile lower as it made lower lows on all 4 days which included a Trend Day Down on Wednesday engulfing the last 10 day composite as it left multiple extension handles on the daily profile at 36020, 35937, 35871 & 35706 and opened with a big gap down of 589 points on Friday as it formed a ‘b’ shape profile with a close around the prominent POC at 35085 which was far away from this week’s Value of 35483-36155-36295 which was overlapping at both sides. The weekly profile has a selling zone from 35313 to 35477 which will be the upside reference for the coming week along with the HVNs at 35820 & 35967 whereas on the downside, the auction would remain weak below 35085 for a probable test of the lower HVN of 34867, the weekly VPOC of 34650 and finally the responsive buying tail of 34345 to 34237 from 28th Jul.