Nifty Spot Weekly Profile (24th to 28th May 2021)
15435 [ 15469 / 15145 ]
Previous week’s report ended with this ‘The weekly profile represents a composite ‘p’ shape with completely higher Value at 14990-15090-15130 and a small spike close from 15137 to 15190 which would be the zone to watch at open for the next session. This week’s ultra prominent POC of 15090 would be the important level to hold on any dip in the coming week whereas on the upside, Nifty has the 12th March selling extension handles of 15196 & 15262 as important references’
Nifty opened above the weekly spike close of 15137 to 15190 on Monday negating the first selling extension handle of 15196 but stopped just below the higher one of 15262 as it could only make a high of 15251 in the ‘A’ period from where it reversed the probe to the downside for the rest of the IB (Initial Balance) as it got into the spike zone of previous week but took support just above 15137 while making a low of 15145 and left a small but important buying tail indicating that the PLR (Path of Least Resistance) for the week was on the upside though it closed as a Normal Day. Tuesday saw a big gap up open of 95 points but a combination of profit booking & fresh supply meant an ORR (Open Rejection Reverse) start as the auction left a selling tail at top and made multiple REs (Range Extension) and even left a selling extension handle at 15233 in the ‘I’ period and went on to make a low of 15163 in the ‘K’ period where it got rejected from previous day’s buying tail leading a bounce back to 15222. Nifty then made an OAIR (Open Auction In Range) start on Wednesday where it not negated the selling extension handle of 15223 but left a buying tail in the IB and gave a rare C period extension handle at 15259 and went on to record new highs at 15320 forming a ‘p’ shape profile for the day and continued to probe higher post IB on Thursday as it made multiple REs in the ‘E’ & ‘F’ period as it tagged 15365 but began to stall in this zone and eventually led to a liquidation move in the ‘J’ & ‘K’ periods hitting new lows for the day at 15272 where it was swiftly rejected and this rejection saw re-entry of fresh demand which gave a quick rise into the close resulting in new highs of 15384 and in the process confirmation of a FA (Failed Auction) at 15272. The auction continued the imbalance on Friday with yet another gap up open as it completed the 1 ATR objective of 15411 from the FA point and recorded new ATH (All Time High) in Nifty at 15455 in the ‘A’ period but settled down into an OAOR (Open Auction Out of Range) forming a narrow range of 50 points in the IB and made couple of attempts in the ‘D’ & ‘E’ periods to probe lower but could only manage similar lows of 15395 which meant that the supply was getting absorbed and this led to a short covering move bringing RE’s to the upside as it tagged 15469 confirming a back to back FA at 15395 but lack of fresh demand meant that the auction remained in the narrow range eventually closing at the day’s prominent POC of 15433 leaving a Neutral Centre Day with one of the narrowest daily range this year of just 75 points.
The weekly profile is a trending one to the upside with higher opening on all 5 days as well as higher highs & lows allbeit in a relatively narrow range of 324 points as Nifty gets accepted in this unchartered territory and the close around the highs suggest the probe higher could continue in the coming week if the auction sustains above 15433. The daily FA’s of 15395 & 15272 would be the references on the downside along with this week’s Value of 15180-15210-15330.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 15440 for a probe to 15501 / 15535 / 15570 / 15625 / 15670 / 15715 / 15751
B) Accepting below 15416 could lead to a test of 15380 / 15348 / 15295 / 15258 / 15210 / 15172 / 15137
NF (Weekly Profile) – 15464 [ 15500 / 15180 ]
NF opened in previous week’s spike zone and got accepted as it built volumes at 15244 for the first couple of days after which it gave a trending move higher for the rest of the week leaving a buying extension handle at 15290 on Wednesday forming higher highs and even confirmed a FA at 15420 on Friday before hitting a high of 15500 as it stopped just below the All Time High of 15524 leaving a Neutral profile on the daily with a close at the dPOC of 14464. The weekly profile which started with a narrow 105 point range on Monday tripled that range to the upside giving a 3 IB week with the Value being completely higher at 15210-15244-15360 and the immediate reference for the coming week would be the prominent dPOC of 14464 below which there is the weekly HVN of 15392.
BankNifty Spot Weekly Profile (24th to 28th May 2021)
35141 [ 35436 / 34410 ]
Previous week’s report ended with this ‘The weekly profile resembles a perfect ‘p’ with an elongated stem from 33500 to 32319 and completely higher Value at 33540-33930-34170. This week’s buying extension handle of 34142 would be the important level on the downside for the coming week(s) with the immediate reference being 34598 below which we have the singles of 34452 to 34152 whereas on the upside, the HVN of 34745 from 17th March will be the first hurdle above which BankNifty could continue this rise towards the daily VPOCs of 35111 & 36233 with the weekly VPOC of 35715 sanwiched in between in the coming days′
BankNifty opened the week with a gap up and a probe higher in the A period on Monday where it tagged 35087 but saw a sharp rejection as it not only retraced the entire move up but went on to make new lows in the B period getting back into previous day’s range and making a low of 34528 leaving long tails at both ends of the IB. The auction then formed a balance for most part of the day in between these singles forming a 3-1-3 profile for the day before it spiked higher in the ‘K’ & ‘L’ periods and went on to tag the first objective of this week which was the VPOC of 35111 after which it made a high of 35216 but once again was swiftly rejected as it left a long responsive selling tail from 35087 to 35216 suggesting that the upside probe was over. Tuesday saw another higher open right in the selling singles where once again the supply was dominant resulting in an initiative selling tail from 34824 to 35126 in the IB after which BankNifty continued to probe lower making multiple REs as it went on to enter previous week’s singles of 34452 to 34152 as it made a low of 34410 where the fall got arrested indicating that the buyers were keen to defend their zone as the day ended with a ‘b’ shape profile and this tussle between the big buyers & sellers led to a narrow 435 point range auction on Wednesday as it left a nicely balanced ‘p’ shape profile with overlapping Value for the third consecutive day. Thursday open saw an attempt to move away from this 3-day Value on the downside in the IB where BankNifty made similar lows of 34537 & 34334 suggesting absorption of supply and the dreaded C side extension lower sealed the fate of the sellers as the auction made a sharp rejection from the marginal new lows of 34530 and not only got back into the 3-day composite confirming a FA (Failed Auction) and completing the 80% Rule but went on to negate Monday’s resposive selling tail as it closed in a spike higher to 35221 and continued this imbalance at open on Friday with a big gap up open where it recorded new highs for the week at 35436 but saw profit booking coming resulting in a OTF (One Time Frame) probe lower for the first half of the day as it hit 35031 in the G period. The auction then settled down into a balance forming a ‘b’ shape profile for the day and made an attempt to spike lower into the close as it made new lows of 34977 but was swiftly rejected from just above the 4-day composite Value of 34638-34829-34951 which will remain the important reference for the coming week. The weekly profile is a relatively narrow range one which has poor lows with completely higher Value and an ultra prominent POC at 34810 which will act as a magnet if BankNifty stays below 35145 where as on the upside the auction would need to sustain above the March monthly POC of 35263 for a probe towards the weekly VPOC of 35715 & the daily one of 36233.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 35150 for a rise to 35263 / 35399 / 35537 / 35715 / 35820 / 35988 / 36111
B) Accepting below 35140, the auction could test 35031 / 34951 / 34829 / 34690 / 34530 / 34410 / 34300
Extended Weekly Hypos
C) Above 36111, can expect higher levels of 36233 / 36381 / 36480 / 36655 / 36756 / 36840 / 36961 / 37090
D) Below 34300, the auction could fall to 34156 / 34062 / 33930 / 33833 / 33685 / 33540 / 33447 / 33200
BNF (Weekly Profile) – 35322 [ 35670 / 34585 ]
BNF continued previous week’s imbalance on Monday as it went on to form Value above the spike zone and even made a new spike higher late in the day to 35429 but left almost a 200 point responsive selling tail at top signalling the end of the upmove. The auction then formed a balance over the next 3 days before giving a freak tick of 34523 at open on Thursday when it moved away from the 4-day composite with the help of a spike higher into the close and extended this imbalance with a gap up open on Friday where it hit 35670 but left a small selling tail in the IB which changed the PLR (Path of Least Resistance) for the day to the downside as it probed lower to test the composite VAH of 35199 before closing the week at 35322. The weekly profile has completely higher Value at 34715-34990-35175 but the immediate reference for the next week would be the HVN of 35395.