How Nifty And Banknifty Traded Today
Slack Update 1
Both the indices gave a quick dip below the important references below and started consolidation around the important references. There was a potential for a FA but it was too early to tell.
Image Nifty Market Profile 1 – https://goo.gl/photos/DPSPYTdeUQaUzayP6
Image Banknifty Market Profile 1 – https://goo.gl/photos/mFJ2cVk1o4KY5ZUM7
Slack Update 2
As the day progressed the consolidation just became more pronounced and prices went nowhere. This lack of follow through suggested that sellers were not able to force the auction down, aka SM was from the buy side.
Image Nifty Market Profile 2 – https://goo.gl/photos/QgHmXyXwzMvefYmb8
Image Banknifty Market Profile 2 – https://goo.gl/photos/rbgQ6BNLRZikjhMd7
Slack Update 3
SM has a habit of testing before they move the price. Another important feature of Sm is they wont stand in the way of the mob. SM let the price slide down below morning lows to test if there was any new business to be done in that direction. On finding no new business prices snapped back up.
Image Nifty Market Profile 3 – https://goo.gl/photos/SahsB5S9eRtQAWkJ9
Image Banknifty Market Profile 3 – https://goo.gl/photos/RZERsXenGtJ2TYgx8
Not surprisingly the snap back rally could not sustain above the ref mentioned on the slack 9966 on Nifty and 24550 on Banknifty. Hence we again came back to lows.
How To Trade Nifty And Banknifty Tomorrow
Close at the lows puts the auction in complete control of sellers. Anything other than lower prices and elongation will put a question mark on todays seller strength.
Image Nifty PAP – https://goo.gl/photos/ik8wSEXYCiBhAF6V8
Image Banknifty PAP – https://goo.gl/photos/zN53epLux2k2U9eJ6