Nifty Spot Weekly Profile (18th to 22nd Oct 2021)
18115 [ 18604 / 18034 ]
Previous week’s report ended with this ‘The weekly profile looks like a Triple Distribution Trend Up one with completely higher Value at 17841-17931-18138 and has left a weekly VPOC at 17694 along with couple of daily VPOCs at 17928 & 18139 which will be the important references below the daily FA of 18248 whereas on the upside, Nifty needs to stay above 18325 to continue probing higher towards probable targets of 18419 / 18590 & 18748 in the coming week’
Nifty continued previous week’s imbalance to the upside with a huge gap up open of 161 points on Monday as it recorded new All Time Highs of 18543 but formed a Normal Day and a Gaussian Profile inside a narrow range of just 98 points with a prominent POC at 18502. Tuesday open saw yet another big gap up of 125 points where the auction completed the weekly objective of 18590 and made an almost OH (Open=High) start at 18604 which was followed by a super quick liquidation break of 204 points in the IB (Initial Balance) as it made a low of 18400 in the B period after which it made a slow probe higher retracing almost the entire fall but got stalled at the important reference of 18590 multiple times building a prominent POC at 18577 and with the demand seeming to wane, sellers piled on the pressure in the second half giving a move away from 18577 and even making new lows for the week at 18378 into the close. Nifty opened slightly higher on Wednesday but formed similar highs of 18458 in the IB confriming that the demand was still absent and this triggered a trending move lower till the ‘K’ period as it broke below the important level of 18325 and went on to revisit the daily FA of 18248 while making a low of 18209 before giving a small bounce back to 18285 into the close. The auction continued it’s run of opening higher with another 116 points gap up on Thursday but gave the second OH start of the week as it made a high of 18384 and confirmed a Drive Down and falling by a whooping 336 points as it not only tagged the 13th Oct VPOC of 18139 but went on to test that day’s buying singles of 18087 to 18051 while making a low of 18048 once again marking the low for the day in the K period before giving a short covering bounce back to 18223 into the close. The trend of gap up open continued for the 7th consecutive session on Friday as Nifty went on to scale above previous day’s extension handle of 18235 and tested the initiative selling tail from 18294 to 18384 but once again formed similar highs in the IB at 18314 signalling that the upside was limited and this led to a trending move lower from the E period onwards with the K period making it a hat-trick to mark the new lows for the day as well as the week at 18034 before giving a small bounce to 18139 into the close.
The weekly profile is a Neutral Extreme Down One also looking like a Triple Distribution Trend Down though Value was completely higher at 18219-18501-18591 with a close way below the value which means that the PLR (Path of Least Resistance) would be to the downside if it stays below 18042 towards the weekly VPOCs of 17931 & 17694 with the immediate upside references for the coming week being at 18156 / 18219 & 18275.
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 18156 for a probe to 18226 / 18275 / 18319 / 18364 / 18425 / 18458 / 18502
B) Accepting below 18091 could lead to a test of 18039 / 17992 / 17931 / 17887 / 17840 / 17765 / 17728
NF (Weekly Profile) – 18144 [ 18594 / 18051 ]
NF continued the imbalance of the previous week as it opened with a gap up of more than 100 points on Monday but settled down into an OAOR (Open Auction Out of Range) and remained in the IB (Initial Balance) range of 82 points for the first half of the day before making couple of REs (Range Extension) to the upside in the G & H periods where it tagged 18543 but failed to extend any further forming a Bell Shape profile for the day with the close at the prominent POC at 18491 and opened higher yet again on Tuesday almost tagging the 1.5 weekly objective of 18597 in the opening minutes where it made a high of 18594 but failed to find fresh demand which in turn led to a big liquidation move in the B period where the auction not only left an extension handle at 18535 but went make new lows for the week at 18411 and made a slow probe higher back to leave a PBH at 18593 confirming lack of demand at these new highs which marked the end of the upside for the week. The auction then trended lower for the remaining 3 days after forming a HVN at 18489 as it left a dPOC at 18361 on Wednesday and gave an Open Test Drive Down from there on Thursday trending lower for most part of the day as it not only tagged the 13th Oct VPOC of 18170 but also went on to make a low of 18077 taking support just above the buying singles from where it gave a bounce back to 18318 at open on Friday but got rejected from Thursday’s initiative selling tail and went on to give another trending move lower for the day resulting in new lows for the week at 18051 and saw some short covering taking place which took it back to 18170. The weekly profile is a Neutral Extreme to the downside though Value was completely higher at 18225-18489-18585 and has formed a HVN lower at 18153 around where it has closed and will be the immediate reference for the coming week staying below which NF could probe lower towards previous week’s HVN of 17970 & the weekly VPOCs of 17919 & 17820.
BankNifty Spot Weekly Profile (18th to 22nd Oct 2021)
40323 [ 40587 / 39293 ]
Previous week’s report ended with this ‘The weekly profile is a trending one to the upside with a buying tail at lows and completely higher Value at 38112-38316-38688 with a HVN at 38843 along with the zone of singles above this week’s Value from 38948 to 39120 which will be the immediate reference on the downside for the coming week whereas on the upside, staying above 39293 BankNifty remains in sync for the probe towards the big round number of 40000 & 40340′
BankNifty opened the week with a big gap up of 453 points and formed new All Time Highs (ATH) of 39947 on Monday but remained in a narrow range leaving a Normal Day and a Gaussian profile with a prominent POC at 39740 and continued the upside imbalance on Tuesday with another higher open where it hit that BRN (Big Round Number) of 40000 and as expected saw some profit booking coming in as it dropped by 617 points in the IB (Initial Balance) and remained in this range all day to form another Normal profile which was also an Outside Bar. The auction then made new lows for the week in the A period on Wednesday but took support right at the level of 39293 and left an small but important buying tail indicating that the demand was back as it completed a hat-trick of Normal Days and continued to build on this 3-day composite Value with an OAIR (Open Auction In Range) start on Thursday and was forming another narrow range balanced profile for the day before it signalled a move away to the upside with an extension handle at 39768 and kept getting stronger leaving couple of more buying handles at 39907 & 39983 with the help of which BankNifty recorded new ATH of 40200 into the close. Friday saw the extension of this imbalance as BankNifty completed the important weekly objective of 40340 in the A period and formed poor lows in the IB at 40149 after which it extended higher with couple of big REs (Range Extension) in the C & D periods tagging 40587 which marked the transition of the imbalance back to balance with the day’s profile leaving yet another Balanced Profile with a close near the prominent POC of 40318.
The weekly profile is a Neutral Extreme to the upside & resembles a DD (Double Distribution) structure with the first 4 days of the week leaving a well balanced profile with a late move away to the upside and has a buying tail from 40011 to 40149 seperating the 2 distributions which will be the first zone of demand on the downside in the coming week. Value was completely higher at 39456-39686-39888 and this could be a very good candidate for the 80% Rule to play out if the auction comes down to test it whereas on the upside, BankNifty will need to get fresh demand above 40318 to continue the probe higher.
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 40403 for a rise to 40502 / 40649 / 40799 / 41010 / 41149 / 41316 / 41533
B) Accepting below 40318, the auction could test 40149 / 41011 / 39818 / 39678 / 39526 / 39293 / 39120
BNF (Weekly Profile) – 40396 [ 40582 / 39394 ]
BNF opened the week with a huge gap up of 383 points as it continued the upside probe it started in the previous week and recorded new ATH of 40002 and followed it up with a higher high of 40040 on Tuesday but the imbalance gave way to a balance being formed till late on Thursday as the auction was forming a Gaussian Curve on the higher timeframe before it gave an initiative move away late on Thursday with couple of extension handles at 39965 & 40068 to leave a Neutral Extreme Up profile on the daily recording new highs of 40327 and continued to probe higher on Friday where it completed an important 3 IB objective on the monthly timeframe at 40550 while making a high of 40582 and formed a Neutral Centre profile on the daily with a close near the prominent dPOC of 40371. The weekly profile which is a Neutral Extreme one to the upside also resembles a DD (Double Distribution) with one big distribution having Value at 39522-39672-39948 and a zone of singles from 40040 to 40201 which moved it away to a higher balance as the week closed in direct contrast with NF but will need fresh demand above 40371 in the coming week to continue higher.