Daily market summary of NF and charts, data of NF & BNF -18Aug'21

NF had a neutral extreme up day auction with spike on 17th..Acceptance above spike was considered bullish. Above 16640 probe was for 16665-16690 and NF had a gap up holding 16640 and probed close to 16690. Later could not sustain higher and broke IBL which pushed it down to tag previous session POC and closed below dPOC. Failing to sustain above 16650 and back below 16600 probe was for 16555 and this happened towards close.

Auction recap from last session :

One time frame up still continues.NF printed 5th day of one time frame up.

NF left failed auction at top.

After FA, it has got clean extension singles and had a lower distrbution till close which brought down dPOC into close and price closed below dPOC..As mentioned in commentary, skew with sellers at close and gapdown/drive down was the bias at close.

NF had a gap up which got closed failing to sustain above PDH after having clean upper distribution at top..This distribution at top not only got FA but able to negate previous session spike up..Suggesting that move from 16540-16680 via spike and gap inventory is not committed and eased off. As mentioned as closing remarks in commentary they do such large whip i.e spike and gap failing immediately, before actual big move.

As said in last report,neutral extreme days could bring in change of auction.And we have back to back neutral extreme days now. As long as extn handle at 16640 holds probe is now for mean reversion down move.

Swing wise above 16640 expected 16750 with 16555 negation. This got whipped now and below 16555 swing short mean reversion move was marked for 16450/16420-380 activated. 16640 negation now.

Have been mentioning in almost every day about the poor structure of the rally with mechanical support + MO not backing up the rally since the move started from 16185 zone.. Now 16545 which took another mechanical support at close. Breaking this could take care of all the mechanical supports mentioned in yesterday report till 16335 swing wise. As discussed in commentary, below 16545 what we have are just stack of cards to be cleared in just 1-2 sessions till 16335/16220. This 16335-16360 very important support zone..As mentioned in weekend report, this zone gave extn on monthly time frame at mid of month. This should show some bounce if we get there.Closing that extn handle zone and accepting below this towards end of month means we could look for more downside.

For next session, above 16600 could test 16640/16680. If fails to sustain below 16480 and accepts back 16520 then could get 16560/16600.

Below 16530 could move to 16480/16450/16420/16390 and weak below 16380 for 16350-16335 if sustains then 16300/16275/16240/16210 probe possible.

Quite weak below 16185 for 16160/16130/16100/16080-16060.

Charts and data :

Detailed plan with references to carry forward, trade hypos for next session, any importance nuance from the day and view based on weekly and monthly time frame are available to members via private blog.

Notes :

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