Nifty Spot Weekly Profile (16th to 20th May 2022)
16266 [ 16400 / 15739 ]
Previous week’s report ended with this ‘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’
Nifty has formed an inside bar on the weekly timeframe with dual auction seen as the auction made failed attempts to clear both previous week’s low of 15735 on Monday but could only manage 15739 after which it probed higher till the IB (initial Balance) on Wednesday but stalled just below previous week’s FA & high of 16404 at it managed to tag 16400. This failure just below the important positional reference then led to a quick fall down to 16211 in the day and was followed by a huge gap down of 323 points on Thursday as the auction went on to drop to 15775 into the close taking support just above Monday’s small initiative buying tail of 15767 to 15739. Friday saw another big gap open of 234 points but to the upside after which Nifty continued to probe higher all day to get back into Wednesday’s range & closed with a spike from 16237 to 16283 leaving a ‘p’ shape profile for the day.
The weekly profile is a Normal Variation one to the upside though the Value has overlapping to lower at 15762-15840-16212 with a close around the HVN of 16248 which will be the immediate reference for the coming session & the ability to sustain above it could bring a move to the daily VPOC of 16340 along with the FA of 16404 above which we have the selling singles from 16482 to 16651 where as on the downside, staying below 16248 the auction could fill up the low volume zone till the lower HVN of 15943 & the weekly POC of 15840.
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 16295 for a probe to 16340 / 16404 / 16455 / 16484 / 16549 / 16624
B) Accepting below 16248 could lead to a test of 16198 / 16116 / 16060 / 16003 / 15944 / 15903
Extended Hypos:
C) Above 16624, can expect higher levels of 16674 / 16754 / 16835 / 16897 / 16945 / 17016 / 17065
D) Below 15903, the auction could fall to 15834 / 15767 / 15671 / 15632 / 15550 / 15504 / 15451
NF (Weekly Profile) – 16253 [ 16363 / 15740 ]
NF opened the week with a Normal Day on Monday staying below previous week’s VAL of 15981 and forming a 3-day balance with the composite POC at 15853 (Click here to view the 3-day composite from 12th to 16th May) and gave a move away from this balance with a Trend Day Up on Tuesday as it got into previous week’s Value leaving couple of extension handles at 15985 & 16177 while making a high of 16275. The auction continued this imbalance to the upside on Wednesday with a higher open which saw it tag previous week’s POC of 16320 but made similar highs of 16355 & 16363 in the IB (Initial Balance) indicating lack of demand and this led to a downside probe and a test of the extension handle of 16177 where it took support before closing the day around the dPOC of 16233.
Thursday saw a huge gap down as NF opened & stayed below the lower extension handle of 15985 and made a slow Trend Day Down completing the 80% Rule in the 3-day composite and even made new lows for the week at 15740 but saw the dPOC shifting lower to 15784 indicating closure of the initiative shorts and for the second day in succession NF opened with another big gap but this time to the upside on Friday as it not only scaled above Thursday’s high confirming a FA (Failed Auction) on the weekly timeframe but continued to drive all through the IB (Initial Balance) forming a big range of 201 points while making a high of 16169 & leaving a long initiative buying tail from 16106 to 15968 after which it managed to tag Wednesday’s VPOC of 16233 & spike higher into the close hitting 16275.
This week’s range was completely inside previous week with overlapping to lower Value at 15892-16232-16340 and need to be seen if we get a move away from this 2-week bracket in the monthly expiry week coming up.
BankNifty Spot Weekly Profile (16th to 20th May 2022)
34276 [ 34656 / 33002 ]
Previous week’s report ended with this ‘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’
BankNifty gave a rare follow up to a Neutral Extreme profile by making new lows of 33002 for the month at open on Monday but was immediately rejected and made a big bounce of 820 points forming a ‘p’ shape profile for the day and this short covering profile was followed by fresh buying on Tuesday where the auction formed a Trend Day Up to further rise to 34366 into the close. Wednesday Open saw the continuation of this imbalance with a higher open but the formation of similar highs at 34656 & 34639 that too right at the VAH of the 4-day composite from 6th to 11th May (Click here to view the MPLite chart of the same) meant that the upside was getting exhausted and this triggered a fall to 34135 where it left similar lows holding just above the yPOC of 34114 which was taken out with a huge gap down of 703 points on Thursday as BankNifty got into Monday’s buying tail of 33346 to 33002 while making a low of 33180 but saw the dPOC shifting lower to 33344 into the close suggesting booking of shorts. Friday open gave more confirmation of this with a big gap up open of 450 points as the auction made an Open Drive higher to the Wednesday poor lows of 34135 in the IB and continued to probe higher to 34358 ending the week just like it had started which is with a ‘p’ shape profile.
The weekly profile looks like a Double Distribution one to the upside with a small tail at lows from 33185 to 33002 along with a low volume zone between the 2 TPO HVNs in the lower & upper distributions at 33576 & 34260 respectively and needs an initiative move away from one of them for a move away from this new 2-week balance. Value was overlapping to lower at 33276-33576-34176.
Weekly Hypos for BankNifty (Spot):
A) BankNifty needs a drive from 34324 for a rise to 34439 / 34537 / 34656 / 34793 / 34901 / 35133 / 35287
B) Accepting below 34260, the auction could test 34091 / 33940 / 33799 / 33627 / 33511 / 33344 / 33185
Extended Hypos:
C) Above 35287, can expect higher levels of 35442 / 35628 / 35798 / 35900 / 36085 / 36309 / 36490
D) Below Below 33185, the auction could fall to 33002 / 32872 / 32697 / 32550 / 32412 / 32172 / 32062
BNF (Weekly Profile) – 34242 [ 34620 / 33005 ]
BNF opened the week with a look down below previous lows of 33025 at open on Monday which was swiftly rejected confirming an Open Rejection Reverse start to the upside as the auction went on to form a huge IB range of 785 points leading to a ‘p’ shape Normal Day with the dPOC at 33709 and gave a move away from here on Tuesday with a Trend Day Up as it went on to scale above the positional reference of 34146 & made a high of 34375.
The auction continued this imbalance with a higher open on Wednesday & hit new highs of 34620 in the A period falling just short of previous week’s POC of 34648 and left a similar high of 34613 in the B indicating that the upmove was weakening triggering a liquidation move lower as BNF broke below the important reference of 34146 and made a low of 34092 after which it opened with a huge gap down of more than 600 points on Thursday and continued to probe lower getting accepted in the Monday’s buying tail to leave similar lows of 33168 & 33160 and saw the laggard shorts getting trapped as it opened with a gap up on Friday triggering a big short covering drive upto 34117 in the IB and formed the second ‘p’ shape daily profile for the week as it tagged Wednesday’s VWAP of 34341 before closing at 34242.
The weekly profile was almost an inside bar in terms of the range & has formed overlapping to lower Value at 33512-34264-34352 with a close above the important level of 34146 but will need to take out last week’s POC of 34648 in the coming session(s) to continue higher.
