Daily market summary of NF and charts, data of NF & BNF -27Jul'21

NF had a ledge yesterday and also 3rd day of short covering profile. After such repeated short covering profiles considered that weaknes in structure and path of least resistance observed for downside. We had a close at dVAL and considered 15860 as resistance at Ledge zone.. Above 15865 probe was for 15890.. NF whipped in this zone and gone for quite tight IB and first session range then gone for sharp move down as double disbn day.

Below 15810 probe was marked till 15690 and NF gone for this move fully and then closed at dPOC.

Auction recap :

NF left a poor high today.

It was 6IB down double distribution trend day which pulled dPOC down with good volume after clean extn singles.This auction today was more than liquidation but orderly supply. Sellers advantage at close with dPOC skew. 15770-15795 strong res zone and staying below this, this volume could get further follow through down below today low to complete the auction.

15820 extn handle of the day becomes now swing ref and this should hold for 1-2 sessions..If this extn handle next manages to accept below 15650 then could look for major move down further. If probed back quick then back to balance.

It was inside day yday and expected imbalance next which took place today.. and this imbalance being DD day, could result in another imbalance day.

For next session, 15770-15795 resistance zone..Failing to sustain/scale this could drop to 15735/15710 and weak below 15710 for 15680/15655/15625. Quite weak below 15610 for 15580/15550-15530.

Failing to sutain below 15660 and back above 15700 could test 15730/15760/15790 if sustains then 15820/15845/15870-15890 probe possible.

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 :

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.