Nifty Spot Weekly Profile (23rd to 27th Aug 2021)
16705 [ 16722 / 16395 ]
Previous week’s report ended with this ‘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’
Nifty opened the week with a big gap up of 142 points but confirmed an Open Drive Down right from the weekly VAH of 16590 as it swiped through the weekly Value of 16590 to 16458 with the help of an initiative selling tail in the IB (Initial Balance) and a big C side extension lower as it made a low of 16404 and tested the previous week’s tiny responsive buying tail from 16404 to 16375 in the ‘D’ period as it made marginal new lows for the day at 16395 and got rejected back into the IB forming a nice balanced profile for the day with a prominent POC at 16515 and this filled up previous week’s low volume zone too. The auction opened in previous day’s selling singles on Tuesday and got accepted there after being rejected from the yPOC of 16515 as the ‘B’ period left a small tail at lows indicating that the downside was limited and followed it up with a late RE (Range Extension) in the ‘I’ period after leaving a PBL (Pull Back Low) right at the weekly POC of 16566 confirming that the PLR (Path of Least Resistance) was on the upside resulting in new highs for the week at 16647. Wednesday saw a continuation of this imbalance with a higher open but Nifty stalled right below the daily FA of 16702 in the IB and settled into an OAOR (Open Auction Out of Range) forming a narrow IB range of just 53 points and the attempt to make a RE to the upside in the ‘E’ period was swiftly rejected as Nifty made a swipe above 16702 but confirmed a fresh FA at new ATH of 16712 in the same period itself indicating lack of demand at these new highs as it closed the day at 16634 forming a Neutral Profile. The auction made another Open Auction start on Thursday forming another narrow IB range of 65 points after which it made the dreaded C side extension higher to 16684 which resulted in a fresh FA once again showing that there is no demand coming in although it could not extend much on the downside too leaving a second successive Neutral Day. Friday open then saw Nifty probing lower in search of buyers as it almost completed the 1 ATR objective of 16564 from the FA of 16712 and took support right at the combo level of the weekly POC plus Wednesday’s PBL of 16566 as it confirmed an initiative buying tail in the IB and went on to trend higher till the ‘K’ period as it re-visted both the FAs and made new ATH of 16722 forming an outside bar on the daily engulfing the last 2 day’s profile and as a result forming a 3-day Gaussian profile with Value at 16633-16669-16694. (Click here to view the 3-day composite chart on MPLite)
The weekly profile looks like a composite ‘p’ with mostly higher Value at 16545-16635-16713 and fresh demand above 16694 in the coming session(s) could mean the start of a fresh upmove resulting in a spike close to the August monthly profile whereas 16635 will be the reference on the downside and acceptance below it could bring a test of the daily VPOC of 16534 & the daily extension handle of 16375.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 16713 for a probe to 16755 / 16804 / 16841 / 16880 / 16915 / 16966 / 17034
B) Accepting below 16691 could lead to a test of 16633 / 16597 / 16534 / 16472 / 16445 / 16405 / 16375
NF (Weekly Profile) – 16718 [ 16745 / 16434 ]
NF opened the week with a trending move lower on Monday for the first 4 periods as it made a low of 16434 where it took support at previous week’s buying tail & reversed the probe to the upside as it left 2 daily VPOCs at 16531 & 16569 on Monday & Tuesday but marked the end of the upmove as it confirmed a FA (Failed Auction) at new ATH of 16745 on Wednesday after which it formed a balance for the rest of the week building a prominent HVN at 16708 which will be the reference for the coming session(s). Value for the week for mostly higher at 16574-16694-16730 and the PLR would remain up till the auction stays above 16694 and will have to negate the FA of 16745.
BankNifty Spot Weekly Profile (23rd to 27th Aug 2021)
35628 [ 35910 / 34817 ]
Previous week’s report ended with this ‘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‘
BankNifty also opened with a substantial gap up of 390 points on Monday but made an almost OH (Open=High) start at 35427 getting rejected right at the top of previous week’s supply zone of 35285 to 35432 confirming a Drive Down as it left a long initiative selling tail & closed the gap completely in the IB (Initial Balance) itself where it made a low of 35035 and continued this imbalance with couple of big REs (Range Extension) in the next 2 periods which saw it drop by a further 200+ points as the auction broke below previous week’s low and tagged 34817 stalling just above the first important support level of the weekly HVN of 34800 and this led to a retracement back to the morning tail as the day closed as a ‘b’ shape profile with the POC at 35117. BankNifty then stayed above this POC in the IB on Tuesday and gave couple of buying extension handles at 35263 & 35429 triggering a trending move higher all day as it made a high of 35795 and continued this imbalance at open on Wednesday where it hit 35910 but the supply came back below the 18th Aug Trend Day selling extension handle of 35982 resulting in an initiative tail from 35910 to 35777 which marked the transition from imbalance back to balance for the rest of the week with the auction forming overlapping Value & POC leaving a nice 4-day composite at 35520-35617-35726. (Click here to view the 4-day Gaussian profile)
The weekly profile represents a ‘p’ shape which implies short covering with overlapping to lower Value at 35378-35588-35784 with the ultra prominent POC of 35588 being the immediate reference for the coming session(s) on the downside along with the buying extension handles of 35429 & 35263 below which the the auction could tag the lower HVN of 35080 whereas on the upside, BankNifty will need to first negate this week’s selling singles of 35795 to 35910 for a probe towards the daily & weekly VPOCs of 36024 & 36113 respectively.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 35726 for a rise to 35833 / 35910 / 36024 / 36113 / 36220 / 36300 / 36381
B) Accepting below 35617, the auction could test 35520 / 35416 / 35263 / 35168 / 35080 / 34973 / 34849
Extended Weekly Hypos
C) Above 36381, can expect higher levels of 36504 / 36655 / 36756 / 36865 / 36961 / 37059 / 37181 / 37331
D) Below 34849, the auction could fall to 34774 / 34690 / 34566 / 34450 / 34348 / 34220 / 34115 / 34039
BNF (Weekly Profile) – 35725 [ 36019 / 35000 ]
BNF opened in previous week’s selling tail on Monday but confirmed an ORR (Open Rejection Revserse) start as it fell by 500 points in the first 5 periods after making a high of 35500 but the test below last week’s low of 35061 was met with rejection with a small responsive buying tail marking the end of the downside and this led to a massive short covering rally resulting in a Trend Day Up on Tuesday as the auction left couple of extension handles at 35416 & 35555 and went on to make a high of 35930 into the close. Wednesday open saw the continuation of this imbalance with new highs for the week as BNF tagged 36019 testing the first of the 3 selling extension handles of the 18th Aug Trend Day Down profile but could not extend any further and left an initiative selling tail in the IB indicating the end of the upside and made a slow probe lower as it remained in Tuesday’s Value and tested the higher extension handle of 35555 on Friday forming a 4-day balance to close the week right at the prominent POC of 35728. The weekly profile looks like a short covering ‘p’ shape composite with overlapping to lower Value at 35518-35728-35910 and would need fresh demand above 35728 to take it higher for a test of the weekly VPOC of 36288 whereas on the downside, the extension handle of 35416 and the Trend Day buying tail of 35271 to 35230 would be the levels on watch for in the coming session(s).