Neutral auction yesterday was suggesting start of fresh auction and if buyers are committed they were expected to hold POC and move higher today..NF opened below POC and could not sustain above in OAIR. Move below 12730 was expected to probe till 12640 and NF made that probe fully then bounced back to close at dPOC.
If we accept below POC/VWAP of neutral day of yday auction then expected a value overlap to fill dent of yday profile between two prominent distribution (with range of 12770 upside and 12640 as downside).NF has done the same today with inside day auction via nice balanced profile.NF printed a inside day with nice 3-1-3 profile i.e, balanced profile with tail at both ends. Accepting tail = trend ; failure to sustain tail = probe back entire value area.
NF has established some signs to start a balance first with some poor value area and poor structure of imbalance from VAL to day high on Tuesday and then with neutral auction yesterday. Today it got confirmed with inside day. Next step is to look for stopping of one time frame up on daily time frame. Holding below 12765, NF could look for a move towards 12580/12520/12450 to set the bottom range for the balance in coming sessions. If we sustain above 12765 with value then this balance view gets negated and could rally again.
For next session, Move above 12740 could test 12765 if sustains then 12795-12830 probe possible. Quite bullish above 12855 for 12890-12910/12950/12990.
Failure to sustain above 12740 could test back 12705 and weak below 12705 for 12680/12650 and quite weak below 12650 for 12620/12595..If sustains below 12580 then could get 12520/12480-12450.
Charts and data :
Detailed plan with refs to carry forward, trade hypos and nuances from the day are available to members.
Notes :
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