Nifty Spot Weekly Profile (26th to 30th Jul 2021)
15763 [ 15893 / 15513 ]
Previous week’s report ended with this ‘The weekly profile is a Neutral one and looks like a DD (Double Distribution) as it got back into the balance it has been forming over the last 6 weeks after making an attempt to move away on the first 2 days failed resulting in a small tail in the middle from 15683 to 15707 seperating the 2 distributions with the upper one having a prominent POC at 15810 which will be the reference to watch on the downside for the coming session(s). Value was overlapping to slightly lower at 15726-15810-15894 with previous week’s POC 15921 being untouched and would be the level which needs to be taken out on the upside for a fresh move higher’
Nifty could not get above the Neutral Extreme zone of last week which was from 15836 to 15899 on Monday where it left the dreaded C side extension making a high of 15893 and got rejected right at the weekly VAH of 15894 which indicated that the upside was limited as it formed a Normal Day. Balance leads to imbalance as the auction gave a trending move lower over the next 2 days giving the highest daily ranges for the month at 181 & 254 points repectively on Tuesday & Wednesday starting with a DD (Double Distribution) profile as it made a low of 15701 on 27th and followed it up with new lows for the month at 15513 on the 28th taking support at the last initiative buying tail it had left on 18th Jun after making the swing low of 15451 it had formed the previous day (16th Jun) with a responsive tail and this marked the end of the imbalance. Nifty then made a retracement back to 15863 over the last 2 days of the week before it saw a quick drop of 100 points in the closing hour and gave a close at 15763.
The weekly profile resembles a composite ‘p’ with Value forming completely inside at 15724-15796-15876 as the bracket behaviour on the larger time frame which has been in play since the first week of Jun continues with multiple attempts to move away on either sides have been met with rejection so it remains to be seen if we get a definite move away from this zone with the weekly VPOC of 15921 being the reference on the upside whereas the daily VPOC of 15654 and this week’s responsive buying tail of 15550 to 15513 being the zone to watch on the downside.
Weekly Hypos for Nifty (Spot):
A) Nifty needs a drive above 15780 for a probe to 15812 / 15858 / 15887 / 15921 / 15965 / 16008 / 16066
B) Accepting below 15765 could lead to a test of 15735 / 15701 / 15654 / 15614 / 15550 / 15504 / 15450
Extended Weekly Hypos
C) Above 16065, can expect higher levels of 16115 / 16165 / 16206 / 16245 / 16280 / 16321 / 16355
NF (Weekly Profile) – 15777 [ 15920 / 15550 ]
NF opened the week with a ‘p’ shape profile on Monday but made a C side extension as it tagged 15920 getting rejected right at previous week’s VAH after which it made another C side RE on Tuesday resulting in a FA (Failed Auction) being confirmed at 15908 after which it trended lower leaving a selling extension handle at 15858 and forming a DD (Double Distribution) Day Down as it made a low of 15731 completing the 1 ATR objective from the FA and then continued this imbalance with an Open Drive Down on Wednesday where it not only completed the 2 ATR target of 15654 but went on to make lows of 15550 (ignoring the freak tick of 15256) but left a responsive buying tail till 15591 marking the end of the down move. The auction then made a retracement back to test the extension handle of 15858 on Friday where it made a high of 15872 but was swiftly rejected triggering a quick drop to 15760 in the last hour with a close right at this week’s VWAP of 15779. The weekly profile has overlapping to lower Value at 15708-15812-15908 with a prominent POC at 15812 which is also around the Roll Over Point of the new series and will be the reference for the coming session to see if NF can give a move away from here on initiative volumes.
BankNifty Spot Weekly Profile (26th to 30th Jul 2021)
34584 [ 35186 / 34115 ]
Previous week’s report ended with this ‘The weekly profile has formed competely lower Value at 34460-34760-34980 but the close has been above the VAH indicating that the downside could be done with but the auction will need get above 35411 and sustain for a move towards the VPOCs of 35700 & 35920 in the coming week whereas on the downside, the old reference of 34750 would be the first line of support below which the levels of 34460 & 34296 could open up
BankNifty opened lower on Monday but got rejected from the 34750 reference leaving an initiative buying tail and formed a ‘p’ shape profile for the day bulding a prominent POC around the weekly VAH of 34980. The auction opened higher on Tuesday and formed the IB (Initial Balance) above this POC but gave the dreaded C side extension which marked exhaustion to the upside resulting in a selling extension handle at 34986 and a FA (Failed Auction) being confirmed at 35188 which in turn triggered a trending move lower for the day as BankNifty hit the 1 ATR objective of 34741 and continued this imbalance with an Open Drive Down on Wednesday as it broke below previous week’s low and went on to complete the 2 ATR target of 34295 which was also the weekly objective as per last week’s report as it made a low of 34115 testing the May’s higher extension handle of 34170 for the second time in 2 months and left a responsive tail from 34220 to 34115 signalling the end of the downside probe. The auction then got back into the weekly Value and formed a balance over the next 2 days in the initiative selling tail of 28th July but could not get above the 27th Jul POC of 34805 as couple of failed attempts to make a RE (Range Extension) to the upside meant that the sellers were still active in this zone ending the week at 34584 which it where it pulled down the weekly POC too.
The weekly profile is a Neutral one with a FA at top and almost similar Value as previous week at 34450-34570-34990 with a close right at this week’s prominent POC so has a good chance of moving away from here in the coming week on either side with 34805 & 34986 being the levels to watch on the upside apart from the FA of 35188 whereas the immediate lower references being at 34348 & 34220 below which the positional buying tail from 33907 to 33560 from 21st May could come into play.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 34595 for a rise to 34723 / 34805 / 34986 / 35096 / 35188 / 35273 / 35411
B) Accepting below 34570, the auction could test 34450 / 34348 / 34220 / 34039 / 33907 / 33811 / 33691
Extended Weekly Hypos
C) Above 35411, can expect higher levels of 35535 / 35700 / 35818 / 35920 / 35988 / 36163 / 36233 / 36381
D) Below 33691, the auction could fall to 33560 / 33447 / 33306 / 33200 / 33101 / 32988 / 32839 / 32740
BNF (Weekly Profile) – 34673 [ 35296 / 34236 ]
BNF opened the week with a Normal Day and a ‘p’ shape profile on Monday as it remained in a narrow range of just 386 points between 35274 & 34887 and continued this balance in the first hour on Tuesday too but then made the dreaded C side extension higher where it made marginal new highs of 35296 and got rejected confirming a FA at top not just on the daily but also on the weekly timeframe as the auction went on to tag the 1 ATR objective of 34840 on the same day and carried on with this imbalance on Wednesday too with an Open Drive Down leaving a long initiative selling tail from 34945 to 34726 and made a further drop to 35236 in the ‘D’ period completing the 2 ATR target of 34384 in the process. However, BNF then marked the end of the imbalance to the downside as it left a responsive buying tail from 34345 to 34236 and got back into the selling singles forming a balanced profile and a Neutral Centre Day on Thursday indicating that both the buyers & sellers were equal in strenght in this zone. Friday continued to see this tussle as the auction formed yet another Normal Day staying in just a 305 point range of A period all day building good volumes at 34660 which turned out to be the daily as well as the weekly POC and would be the reference for the next open for a probable move away on initiative volumes. The weekly profile is a Neutral Centre one with overlapping Value at 34550-34660-35110 with 34887 being the first big hurdle on the upside along with the July series VWAP of 35096 and this week’s FA of 35296 whereas BNF would remain weak below 34660 with Thursday’s VWAP of 34565 being the immediate support below which it could test the buying singles of 34348 to 34236 which if broken could trigger a fresh leg lower.