Nifty Spot Weekly Profile (31st Jan to 04th Feb 2022)
17516 [ 17794 / 17244 ]
Previous week’s report ended with this ‘This week’s profile is an elongated one to the downside with a range of 763 points and completely lower Value at 16926-17112-17244 with a long selling tail at top (17516 to 17599) & a small buying one at the lows (16866 to 16836) closing right at the POC which will be the immediate reference for the next week which has a big event in form of the Annual Budget. The levels to watch on the downside would be Thursday’s PBL of 17044 & the VPOC of 17010 along with the 2 ATR target of 16909 whereas on the upside, 17208 would be the first hurdle along with Friday’s Scene Of Crime at 17275 & the FA of 17373’
Nifty opened with a big gap up of 200 points on Monday and stayed above previous week’s Value forming a Neutral Centre profile while confirming a FA (Failed Auction) at lows of 17264 and promptly completed the 1 ATR objective of 17509 with another higher open on Tuesday as it got accepted in previous week’s selling singles but saw wild swings in both directions because of the Budget Session & the late afternoon swipe it made to the downside got rejected exactly at the weekly VAH of 17244 indicating the end of the downside as it left a FA on the higher timeframe triggering a move back to 17610 into the close leaving a Neutral Extreme Day.
There was a rare follow up to a Neutral Extreme profile with the auction completing a hat-trick of gap up opens on Wednesday and seemed like would tag the 1 ATR objective of 17859 from the weekly FA of 17244 but stalled after tagging the 20th Jan VPOC of 17784 while making a high of 17794 forming a narrow 120 point range for the day signalling poor trade facilitation due to diminishing demand. Thursday then saw an Open Rejection Reverse start to the downside as Nifty not only left an initiative tail in the Initial Balance (IB) but went on to make a trending move of 270 points to the downside as it got back into Tuesday’s range & value hitting a low of 17511 with the help of a spike into the close.
The auction then got accepted in this spike on Friday forming a Normal Day with completely lower Value with similar lows of 17462 with a close around the prominent POC at 17529 which is also the weekly POC and will be the immediate reference for the coming session(s). This week’s profile is a Neutral Centre one with completely higher Value at 17457-17529-17757 and a FA at lows of 17244 which is now a positional reference with 17452 being the immediate level to watch on the downside whereas on the upside, Nifty will need to get above 17596 & the 03rd Feb VPOC of 17706.
Weekly Hypos for Nifty (Spot):
A)Nifty needs a drive above 17529 for a probe to 17596 / 17641 / 17706 / 17757 / 17795 / 17885
B) Accepting below 17498 could lead to a test of 17452 / 17410 / 17339 / 17290 / 17244 / 17185
C) Above 17885, can expect higher levels of 17921 / 17961 / 17997 / 18085 / 18134 / 18186
D) Below 17185, the auction could fall to 17112 / 17044 / 16982 / 16926 / 16866 / 16819
NF (Weekly Profile) – 17529 [ 17810 / 17231 ]
NF made a move away from previous week’s Value forming higher highs of the first 3 days of the week as it hit 17810 on Wednesday before giving a retracement back to 17475 on Friday where it made similar lows before closing around the POC of 17564 forming completely higher Value for this week at 17456-17565-17768.
BankNifty Spot Weekly Profile (31st Jan to 04th Feb 2022)
38789 [ 39424 / 37467 ]
Previous week’s report ended with this ‘The weekly profile is once again an elongated one of 2046 points with mostly lower Value at 36720-37320-37872 and has closed around the middle and has a prominent POC at 37320 staying above which it could fill up the zone till 38216 in the coming sessions before giving a move away’
BankNifty opened the week with a big 400 point gap up and went on to make a high of 38217 but left a small selling tail in the A period and reversed the probe to the downside as it got back into previous week’s Value and even made couple of REs (Range Extension) lower but stalled right at the TPO HVN of 37647 and left a responsive buying tail marking the end of the downside as it left a 3-1-3 balanced profile for the day.
The auction then moved away from this balance with another gap up open of almost 500 points on the Budget Day (Tuesday – 1st Feb) and scaled above the January poor highs of 38855 while making a high of 38787 in the A period but then made the dreaded C side extension to 38802 which was swiftly rejected resulting in a daily FA being confirmed triggering a quick fall down to 37690 in the I TPO stopping in previous day’s buying tail and for the second time got rejected from an entry into the weekly Value giving a bounce back to 38614 and completed a hat-trick of higher opens on Wednesday where it not only negated the FA of 38802 but left an initiative buying tail in the IB and went on to make a high of 39386 forming a ‘p’ shape profile for the day.
BankNifty then made a marginal new high for the week at 39398 in the A period on Thursday but stalled right below the weekly & Nov monthly VPOC of 39404 and left an initiative selling tail in the IB and made couple of REs lower but could only manage marginal new lows which led to a short covering move in the G & H periods and a RE to the upside to 39424 but this tag of 39404 was also swiftly rejected indicating clear lack of demand resulting in another FA which not only marked the end of the upside for the week but went on to complete the 1 ATR objective of 38698 while making a low of 38562 on Friday.
The weekly profile is a trending one to the upside with a range of 1777 points & completely higher Value at 38304-39156-39360 but has closed in the middle signalling that it could form a balance for the coming week before giving a move to one of the weekly VPOCs of 37320 on the downside or 39936 to the upside.
Weekly Hypos for Bank Nifty (Spot):
A) BankNifty needs a drive from 38810 for a rise to 38927 / 39156 / 39271 / 39424 / 39562 / 39780
B) Accepting below 38738, the auction could test 38601 / 38490 / 38304 / 38217 / 38026 / 37827
C) Above 39780, can expect higher levels of 39936 / 40041 / 40152 / 40244 / 40417 / 40560
D) Below 37827, the auction could fall to 37674 / 37514 / 37420 / 37320 / 37110 / 37012
BNF (Weekly Profile) – 38870 [ 39540 / 37757 ]
BNF also made a trending move away from previous week’s Value after making a low of 37757 on Monday where it took support just above last Thursday’s VWAP of 37714 and confirmed a multi-day FA there to hit higher highs till Thursday where the confirmation of another FA at 39540 marked the end of the upmove and led to a pull back to 38655 on Friday. The weekly Value was completely higher at 38400-39296-39464 but there is visible profit booking also done by the longs.