Daily market summary for NF and charts,data for NF & BNF -19Oct’20

NF closed on 16th as upper skew balanced profile with dPOC close and tail at low.With such close and negating partly extension singles from 15th, observation at close was that it was advantage buyers to seek for follow through higher.They had a good follow through via gap up today and probe above PDH scale was for 11850 then above 11870 for 11930..NF managed to get only till 11890 zone via short covering and then gone to all day balanced auction and closed at day high.

NF printed a normal day today with solid poor high.Such poor high is indication of exhaustion mainly caused by dominance of retails and absence of OTF.Due to gap up after balanced profile, shorts from balanced day gone for cover earlier in the day.But once that auction of short squeeze is done, NF left with less committed buyers who could not get follow up demand which resulted in poor high.

Immediate reaction after such poor high is small liquidation to remove weak longs then go for repairing that poor high shortly in a session or two.Focus on this tomorrow if NF opens inside range..To negate this, NF should have gap or open drive at open.

NF negated trend day ref zones like extension handle and extn singles with value today.Our observation was that odds are higher for balance to happen for few sessions as we had quick imbalance to imbalance in large time frame as well as in smaller time frame recently..We have kept 11850 as ref to get this confirmation and its done today.

Price wise for next session, need to take 11895 early in the session to get 11930-11950 and bullish above 11950 for 12010/12050..

Weak below 11880 to test 11850-11840.

NF printed a ledge around 11840..If this goes then more weakness towards 11800-11790/11765 and quite weak below 11760 for 11730/11700.

If we get open inside value tomorrow then odds are higher for two way auction.

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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