Nifty Spot Weekly Profile (17th to 21st Jan 2022)
17617 [ 18350 / 17485 ]
Previous week’s report ended with this ‘Value for the week was completely higher at 18036-18186-18285 with the DD singles from 18141 to 18079 which will be the first zone of support below which the daily VPOC of 18031 & the FA of 17964 would be the important levels to watch in the coming week whereas on the upside, the auction will need to take out the 27th Oct VPOC & FA of 18311 & 18342 for a fresh probe towards the weekly VPOC of 18501’
Nifty tagged the 27th Oct VPOC of 18311 on Monday but could only form a Normal Day and a ‘p’ shape profile with an ultra prominent TPO POC at 18300 as it remained in a narrow range of just 93 points indicating poor trade facilitation in this previous supply zone which was further confirmed with an ORR (Open Rejection Reverse) start on Tuesday where the auction made a look up above the daily FA of 18342 but was swiftly rejected confirming a weekly FA at 18351 by breaking below Monday’s low in the Initial Balance (IB) itself and left an extension handle right at ther weekly POC of 18186 which triggered a huge range expansion to the downside for the rest of the week.
Wednesday saw an Open Drive Down on Wednesday where Nifty replaced previous week’s DD buying singles of 18141 to 18079 with a selling one from 18065 to 18129 and went on to complete the 1 ATR objective of 17787 on Thursday with the help of another initiative selling tail and even tagged the 07th Jan VPOC of 17772 along with the weekly VPOC of 17706 while making a low of 17648 and saw a good bounce back to the dPOC of 17784 into the close but continued this imbalance to the downside with a big gap down open on Friday and a move lower to 17525 in the IB almost tagging the 3rd Jan VPOC of 17518 inducing another bounce as it got back into previous day’s range forming a large IB of 155 points and saw an attempt to extend the range to the upside failing right at the broken weekly VPOC of 17707 which led to a quick liquidation move of 222 points as the auction made new lows for the week at 17486 where the initiative buyers from the first day of 2022 defended their zone trapping the late shorts causing a short covering move back to the dPOC of 17604 into the close forming a Neutral Centre Day.
The weekly profile is a Neutral Extreme one to the downside with a huge range of 865 points and has formed outside Value at 17757-18285-18345 with a FA at top at 18351 which is now a positional reference along with the couple of extension handles it has left at 18186 & 18085. The immediate levels to watch on the upside would be the FA of 17707 & the daily VPOC of 17784 whereas on the downside, the buying tail from 17461 to 17354 would be the zone to watch below which Nifty could get back to that prominent weekly VPOC of 17229 which will also be the 2 ATR objective from the weekly FA of 18351.
Weekly Hypos for Nifty (Spot):
A)Nifty needs a drive above 17655 for a probe to 17707 / 17733 / 17784 / 17835 / 17921 / 17961 / 17997
B) Accepting below 17604 could lead to a test of 17567 / 17516 / 17461 / 17426 / 17356 / 17281 / 17229
C) Above 17997, can expect higher levels of 18085 / 18134 / 18186 / 18228 / 18261 / 18318 / 18351
D) Below 17229, the auction could fall to 17169 / 17083 / 17047 / 16982 / 16947 / 16902 / 16833
NF (Weekly Profile) – 17618 [ 18363 / 17502 ]
Previous week’s report ended with this ‘The weekly profile was a relatively narrow range one of 415 points & resembles a Double Distribution (DD) Trend one up with completely higher Value at 18062-18250-18318 and has a prominent POC at 18250 which will be the important reference on the downside for the coming week along with the DD singles of 18174 to 18113’
NF took support at the weekly POC of 18250 on Monday & made new highs for the series at 18350 but could only form a Normal ‘p’ shape profile for the day with a prominent POC at 18335 and followed it up with a higher open on Tuesday which got rejected as the auction confirmed a weekly FA at 18363 triggering a trending move lower for the rest of the week at it left a hat-trick of daily VPOCs at 18274 / 17976 & 17819 and not only completed the 1 ATR objective of 17799 but went on break below the weekly VPOC of 17750 to make a low of 17502 on Friday as it took support at the buying singles from 1st week of Jan to leave a Neutral Extreme profile on the weekly with a huge range of 861 points & completely overlapping Value at 17754-17970-18354.
BankNifty Spot Weekly Profile (17th to 21st Jan 2022)
37574 [ 38855 / 37224 ]
Previous week’s report ended with this ‘The weekly range was a narrow one of just 922 points with completely higher Value at 38088-38448-38472 but has left 2 daily VPOCs at 38456 & 38736 on the upside and till these are not taken out, the upside for the coming week would be limited’
BankNifty tagged the first of the higher VPOCs of 38456 on Monday but left an initiative selling tail from 38390 to 38617 & formed a ‘b’ shape profile for the day with a prominent POC at 38236 as the sellers failed to extend the range much on the downside. The auction then remained above this POC of 38236 and began to coil on Tuesday for the first couple of hours before giving a move away to the upside as it left an extension handle at the weekly POC of 38448 and not only tagged the remaining daily VPOC of 38736 but even make a look up above previous week’s high hitting new highs for the month at 38855 where it showed exhaustion indicating that the upmove was more because of short covering rather than fresh buying triggering a big liquidation drop to 38095 into the close leaving a Neutral Extreme profile which confirmed a weekly FA at 38855.
Wednesday saw an open in the Neutral Extreme zone and a probe below previous week’s low of 37929 in the A period which was held as it left a small buying tail in the IB after which BankNifty made a big C side swipe to 38330 but stalled just below the yPOC of 38353 and immediately got back into the IB leaving a long responsive selling tail from 38196 to 38330 confirming that the PLR (Path of Least Resistance) was to the downside as it left the second Neutral profile hitting new lows of 37769 for the week with a daily FA at 38330 and a prominent POC at 38051. The auction then opened slightly higher on Thursday but could not get above yVAH leaving an Open Rejection Reverse start and probed lower first completing the 1 ATR objective of 37757 from 38330 after which it tagged the weekly VPOC of 37692 while making a low of 37592 for the day and extended this imbalance on Friday where it completed the 1 ATR objective of 37227 from the weekly FA of 38855 at open itself but settled down into an OAOR (Open Auction Out of Range) and gave two-way moves for the day with a probe first up to 37739 in the H period and a fall back to 37245 in the L TPO which was followed by a swipe back upto 37741 into the close.
The weekly profile has made an outside bar with a range of 1631 points & Value also is overlapping at 37632-37992-38496 with a close in the High Volume Zone between 37540 to 37575 with Friday’s similar highs of 37740 being the immediate reference on the upside along with the daily VPOC of 37955 from 20th Jan whereas on the downside, the 6th Jan VPOC of 37215 will be the first level on watch along with the 5th Jan initiative buying singles from 37106 to 36756.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 37632 for a rise to 37757 / 37862 / 38042 / 38196 / 38353 / 38496 / 38613
B) Accepting below 37540, the auction could test 37382 / 37215 / 37058 / 36887 / 36701 / 36519 / 36374
C) Above 38613, can expect higher levels of 38745 / 38855 / 39060 / 39244 / 39424 / 39562
D) Below 36374, the auction could fall to 36206 / 36001 / 35856 / 35710 / 35596 / 35483
BNF (Weekly Profile) – 37598 [ 38966 / 37276 ]
Previous week’s report ended with this ‘The weekly profile is a balanced one in a narrow range of 957 points with mostly higher Value at 38208-38264-38624 with a close right in the middle so could continue forming a balance over the longer timeframe with the HVN of 38874 as reference on the upside & this week’s POC of 38264 the level to watch on the downside’
BNF also took support at previous week’s POC of 38264 on Monday but formed a ‘b’ shape profile with a prominent POC at 38375 and gave a move away from here on Tuesday leaving an extension handle at the weekly VAH of 38625 and hitting new highs for the series at 38966 but could not sustain above last week’s high of 38957 which led to the reversal of the auction to the downside as it not only got back into previous week’s Value but confirmed a weekly FA at top and formed a 2-day balance with lower Value on Wendesday & Thursday and tagged the 1 ATR objective of 37339 on Friday as it made a low of 37284 but confirmed a FA at lows forming a Neutral Centre Day which could mark the end of the downmove. The weekly profile is an outside bar with overlapping to lower Value at 37704-38040-38592 and has held just above the initiative buying tail of 37201 to 36850 from 5th Jan.