Daily market summary of NF and charts, data of NF & BNF -11Feb'22

NF had a double distribution higher value day on Thursday. Observation was that concern was with long side due to thicker distribution at top then lower distribution which was thin and closed below dPOC. It was considered as weak auction from buyers.If no gap or drive from them then expectation was to test extn singles and drift down to low of RBI day. That thicker disbn at top opened NF at previous day low zone and gone for clean long liquidation in morning auction below PDL.

Later, could not extend much below IBL after large grind then bounced to morning tail zone/PDL zone, got rejected to close below dPOC. Below 17430 probe was marked for 17380 then below 17370 probe was for 17330-305/17280/17250. NF made a clean move from 17430 to 17280 zone in morning session then bounced and later closed below dPOC.

Pointers from the day :

Clean long liquidation profile below higher value double distribution profile.We have discussed many times that when price opens below extn handle/singles of double distribution profile, we could look for solid liquidation from stuck buyers of double distribution profile.This has happened on Friday.

Now, with this long liquidation profile close is again weak as discussed in commentary for follow through downside in next session.If this profile gives up then another solid liquidation move possible. If fails to sustain below this profile, then could repair value area fully.

NF had selling tail from PDL zone and that got rejected on intra bounce..This tail zone now good swing ref upside 17470-17490 zone.

Swing wise, break of 17520 was marked for 17440/17300/17200. This move is on now with yday auction and negation at 17490 now.

Hypos wise for next session failing to stay above 17350 and break of 17320 could get 17280 and weak below 17280 for 17250-230/17200-17190/17150-17130. Below 17110 could get 17085/17040 if sustains then 16995/16965 possible.

Failing to sustain below 17230 and back above 17340 could test 17375/17410 and above 17420 could get 17450/17490. Move above 17490 could probe 17550/17590.

Larger picture :

Weekly :

It was triple distribution weekly profile last week with wide POC at 17565. Staying below 17565-17600 expected test of 17450-17400 if accepts 17400 then clean move expected for 17250 which expected to bounce else 17100-17050 was the probe. And this 17100-17050 marked as very good support zone next to look for bounce for the week.NF started the week below 17565 and first day itself moved all the way down to 17100 mark..Next day held that 17100-17050 good support zone then from there bounced to that wide POC zone of triple disbn profile, pushed till 17650 then retraced down to close below dPOC of the week now.

Weak close below weekly dPOC as well as from daily long liquidation structure.

Below is the composite of 17800-16850. Clean 3rd week of overlap.Current week or even one more week could spend within this large balance as we need some more filling in this composite..

Hypos wise for the week, staying below 17490 looking for 17200/17130-17090 then expecting bounce from there or extreme case could stretch to 17050-16995 zone then bounce back to 17300/17450-17490 and above 17490 could get 17590/17650 if sustains then 17800/17950 possible. Below 16950 could extend down towards 16850/16600/16450.

Monthly :

After failed trending month in Jan observation was that odds for Feb for inside overlap month to fill the Jan profile.. So, expectation was to look for two way auction than one way directional move in Feb. Sofar,thats what happening and likely to continue so.. 16850-17050 lower support band and 17600 pivot and 17800-17950 upper end now.

Charts :

Daily

Weekly

Monthly :

Data :

Detailed plan with references to carry forward, actionable trade hypos for next session, any importance nuance from the day and view based on weekly and monthly time frame are available to members in private blog.Above report is only part of it.

Notes :

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