RK
- Oct 24, 2020
- 3 min read

Daily market summary for NF and charts,data for NF & BNF -23Oct’20

NF has closed at previous imbalance zone on Thursday with close above dPOC..Slight edge was with buyers and if they could clear FA 11935 then was expected to close extn singles at top till 11975-11995.NF cleared previuos day FA 11935 via open auction and tagged 11970 by IB and then remained in tight auction all day..Later printed neutral profile and closed at dVAL.

Expected another volatile session to close the week but NF ended with narrow range day with less than average volume.

NF had a neutral auction i.e,clearing IB but failed to sustain and probed other side of IB..Absence of OTF considering range and volume.Lack of conviction by sellers and buyers failed to get a meaningful auction and ended as neutral. Could expect initiative move after such profile.

NF printed 3-1-3 profile i.e, tail at both ends top and bottom with nice balance between tails..Clearing tail after such profile = trend ; failing to sustain beyond tail means back to probe entire value area..

Price wise, holding 11910 NF could scale higher towards 11975-11995/12020/12050.Failing to sustain 11975 and back below 11950 could test 11910.

Weak below 11910 for 11870/11840 and quite weak below 11820 for 11790/11765.

Larger picture :

Weekly :

After selloff on 15th, price was closed last week around 11750 with 45 degree line from POC of the week which was at 11930..With such price skew,if sellers fails to sustain below 11700 early in the week then probe was expected for 11930.If sustains 11930 then retest to 12000-12050 was expected and then expected a balance for few sessions based on profile structure of last two weeks.NF followed this auction last week with a probe of 11930 and then 12015 in first 3days then gone for balance.Momentum was for above 12050 or below 11700 and NF remained roughly within this range last week.

NF now has ended with inside week with poor high at top.

If we consider last two weeks then its overlap and if we consider last 3 weeks (check weekly chart in charts section below) then overlap at upper quad with exhaustion at higher range..This overlap is weakness as of now and to negate this weakness buyers need to get a good extension above this poor high zone early in the week say in 1-2 sessions else clearing that heavy top would be difficult and path of least resistance would be to test lower end again.

Same 12050-12065 my ref on upside to confirm that we could get a rally towards 12250/12300 in coming week.

Failing to scale 12050 and facing exhaustion in 12020-12050 zone could push it down back to 11850-11820.

Weak below 11820 to test 11750-11700 and quite weak below 11700 for 11610-11590/11450/11300-11200.

Monthly :

Clear P was in making on monthly profile as per last week report and staying above 11700 zone was expected to probe dVAH zone 12000 and expected to remain as P with some balance for few sessions.Week gone has followed this auction in developing value of this monthly P and registered firm P as of now.

Now as long as staying below 12050 could again expect a grind in this dev P value zone between 11700-12000..Month could get a spike if accepts above 12050 towards end of month..And below 11700 if gets volume then could get a imbalance down towards 11450 to start with..Check the chart shared in last week report to understand importance of rejection/acceptance of this 11700.

To conclude, we don't have secured high at 12015 hence staying above 11820 in next week, we could get one high above 12015 and then need to take out 12050 for bullish move towards 12250/12300..If meets exhaustion/rejection again around 12020 then retest of 11820 zone if gives up then 11730-11700/11600 and then imbalance down.

Charts and data :

Daily charts