Daily market summary of NF and charts, data of NF & BNF -21Jan'22

NF had printed 3rd day of one time frame down on Thursday and that ST excess marked at 18350 zone reparied till 17710 all poor structure and then closed with buying tail. Observation was that as long as 17720-17680 holds could look for balance but move higher could be sold off again. If moves below 17680 again means then probe was marked for 17520/17410 from where Jan trending move started.

NF opened with gap down below 17680.Hypo below 17675 was for 17575/17525 and NF gone for probe towards 17545 in IB session then later failed to sustain above IBH and gone for 17525 probe by close then closed above dPOC with another buying tail.

Pointers from the day :

That 18350 excess ruling strong and NF now printed 4th day of one time frame down.

It was neutral day with probe above and below IB range on same day. End of auction or start of fresh leg again from here after this neutral day.VWAP and tails ref zone to conclude.

Failed auction at top at 17720 which tested buying tail zone of 03/01 trend day which rejected and closed NF above dPOC with another clean buying tail. These buyers need to sustain VWAP and take out FA at top. Till this buying tail not able to clear FA at top buyers would be still in trouble.As mentioned in commentary towards close of the day, larger time frame is looking for clearing Jan low i.e, 17410. Mentioned in last report that probe below 17720-17680 band could probe 17520/17410 in which first obj done now and next probe got higher odds with this FA at top today.

Volume has been quite good last 3 sessions and esp Friday session got 127L vol against average of 76L from last 10days average..So, more imbalance move on cards till this FA at 17720 holds.

It was nice balanced profile and could look for imbalance session next.

Hypos wise for next session, 17620-17600 support.Below this could get 17565/17520 and weak below 17520 tail zone for 17495/17445/17410/17385-17365.Quite weak below 17350 further for 17320/17290/17265/17235.

If fails to sustain below 17520 and accepts above 17595 then could get 17625-17645 and above 17645 possible to get 17675/17720 and bullish further above 17740 for 17790-17810/17865.

Larger picture :

Weekly :

NF printed double distribution weekly profile last week and also it was 3rd week of time frame up. Expectation for buyers was again to get or drive to start the week, to stay away from DD profile else retest of 18190/18080 expected for a bounce back. Acceptance below 18080, probe was marked for 17750. Mentioned that 17750-17710 quite good support, goes means then probe was marked for 17550/17400. Bullish scenarios were marked if weekly sustains above 18350.

NF started the week marginally hitting above DD week high but could not sustain and left secured high. It just looked above 18350 then started moving down entire week started closing gap zone of DD week then all the way down towards last obj zone marked at 17550. If you recollect, we have been discussing in daily reports since that move started in early Jan that it has been happening with poor structure..

And once 18120 got cleared with gap, mentioned that they ditched all poor structure and gone for fresh rally to repair poor structure later.This week they closed that gap zone 18120 and repaired entire poor structure zone it has created..Following are significant developments from last week.

a) It has cleared weak high from Oct at 18350 and created excess there now.

b) Daily time frame accelerating down this week with higher volume every session which cleared two maj support zone 18100 gap zone then 17550 major trend day ref from 03/01.

c) It was outside week i.e. cleared above last week high and also low in current week closed.Probable scenarios next are either large overlap or more on same side of outside profile.

All above info suggesting imbalance could continue if Friday tail zone could not defend the auction and negate FA at 17720 at top.On a strong trend, once major refs are getting taken out one by one with volume means then odds are higher to reach the zone from where entire strong trend started..NF now cleared Jan strong support zones 18100 and 17550 as mentioned in point b above.

With that context, probe and acceptance of 17550 again opens up 17410/17250/17050 for the coming week as 17410 Jan low,17250 wide POC downside and then 17050 next trend day ref zone from 27/12.

Hypos wise for the week, 17750 resistance. Acceptance could get 17910-17950/18100.Another bullish scenario is look below 17410 and fail then accept above 17550 to test 17650/17720-17750/17900/18100.

Failing to stay above 17750 and accepting below 17600-17550 band could get 17410-17365 zone and might offer a bounce if fails to sustain then 17250/17050 probe possible..17050-16980 next good support zone for the bounce.If accepts below this band then 16850/16720 probe possible.

Monthly :

Jan has been trending month at end of last week and marked 18050 as minor suppor and 17600 major support to sustain trend. If 18050 goes then mentioned that trending month could pull back to dPOC zone at 17800-17750 zone if susains further down then 17600 possible to test buyers who started the trending month.

Now, Jan has become failed trend month and we gone for testing below 17600 to close the week. If we start developing daily value below 17600 then probe is get below trending month low 17410 as thats what happens when a strong trending month gives up in mid of the month (its like strong trend day in first session giving up VWAP with volume in second session which usually goes to other end i.e, low of the day) and below 17410, Dec wide POC 17250 acts as magnet to pull the price which could offer a pause..If we start accepting below 17250 then LVN zone of Dec 16800-16600 zone probe next.

For any reversal, they need to start accepting above 17800 with daily value now and then scale above 18100.

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 :

a) Check glossary page in website if any of the terms used in the post are not clear.

b) If images are not clear, click on them for enlarged view.