Daily market summary for NF and charts, data for NF & BNF -25Nov’20

NF cleared previous FA zone in yesterday auction and moved away from last week nice balance above 12980.Mentioned that it had a struggled auction yesterday due to rollover as well as short covering with a small spike. Buyers were expected to have higher/higher overlap value today else expectation was to easily repair yesterday value area of the struggled day which had narrow range and lower volume too.

NF had a clean gap up and tight narrow range IB but could not sustain IBL and gone for imbalance down first to clear entire balance of yesterday. Buyers were expected to hold 13040 today and considered weak below 13040 for 12980/12950 then 12890/12865 below 12930.NF gone for probing all these downside objectives via trend day down and closed at lower quad.

Pointers from auction today :

NF printed a excess at top today and that excess pushed for outside day auction. This excess could control auction for few sessions.

NF got triple distribution trend day down with 7IB move with rotation factor -14..When such auction of triple disbn+ outside day happens inside balance zone, it usually suggests end of move and grind ahead for few sessions. But today it has happened after excess at top and established clean auction with supply controlling all day with clean balance and clean extension down. So,could not consider this auction just as liquidation and odds are higher for this profile to get continuation in coming sessions..13060 negation as of now for this view. As long as this 13060 holds, this excess at top is looking at 12750/12680-12650 probe minimum.

We had volume too good today around 185L above average. If we get another higher volume session in continuation then probe could extend till 12450-12350 in short term.

Yesterday's auction has confirmed swing support at 12950-12980 band and that gave up easily today. And, we have balance now till 12750 below 12950..Any bounce to this 12950-12980 could invite supply again for this probe of 12750 going forward.And,today at low auction is not yet completed.

For tomorrow, first reaction is to expect a two way auction between 12850-12980 zone after such stretched inventory day.

Above 12920 could get 12945/12960-980..If fails to sustain this zone, could fall back to 12890/12865-12850.

Above 12990 could move towards 13020/13045-13060 and quite bullish above 13060 for 13100-13130.

Below 12850 could test 12820-12800 and quite weak below 12800 for 12765/12730-12710/12680-12650.

Charts and data :

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