Daily market summary of NF and charts, data of NF & BNF -24May'22

NF had a neutral extreme down day in last session with minor spike and observation was that committed supply was not seen.If supply was committed then expected them to hold below 16250-270 zone and go for accepting beow PDL to get a move for testing Friday tail zone below 16100.Supply proved their commitment all dayholding below 16250 at open via open test drive down then later intra bounce also they rejected swiftly to push down below IBL to enter fully into Friday tail zone below 16100..At close, bounced to close at dPOC.

It was one weird profile structure wise and quite a choppy auction today but all day supply was keen to have lower value today. As of now supply is in control.. As mentioned in commentary, we got dPOC skew for the day as well as with last two days merged auction.. We had 45 degree move away from POC yday and they justified the move with lower value today..If supply is still committed then this skewed dPOC auction should defend below 16140-16170 zone and look for creating value below 16100 again. Else this dPOC skew could push higher clean towards 16250-16280/16350 above 16170.

NF gone to test Friday large tail zone today is a sign of weakness but got bounce at close from tail zone..This bounce was exactly from mid point of large tail zone from last Friday..It was mechanical and weak low there..So, holding below 16140-170 band supply have to clear this mechanical level next to fill rest of tail zone for weakness to continue.

Larger context observation to get one time frame up on daily got negated today with PDL swipe. Buyers able to get only two days of one time frame up and given up today. We are back to large balance auction now from directional bias.Swipe of 16050 negation today happened but we got a rally into close..This rally high 16125 and VWAP 16140 ( though it was neutral day by definition, by auction wise it was almost neutral day so VWAP ref for next session) ref for next session to see acceptance to justify the rally at close..Else, we could rotate down in Friday tail zone to look for 15960/15920/15850.

Swing long from 16100 after meeting 16350 now got negated below 16050. Swing short now below 16050 for 15960-15920 zone then 15850/15760 with negation at 16175 and once 15960 done could move negation to 16120.

Charts & 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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