NF had a balanced profile on Monday and buyers were required to defend buying tail of that profile for clean range extn higher. Buyers failed today. NF started with open auction inside range, did slow skew higher but fail to sustain Yday VAH (value area high) and gone for liquidation which cleared PDL. Buyers responded below PDL and left buying tail there. It was Neutral center auction today.
Neutral Center profile today i.e. first scaled over IB (Initial balance) high, fail to sustain there and then goes on to move below IB low. First one hour H-L range is considered as IB. Neutral center profile suggests both buyers and sellers had tough fight over control of auction today. Thus it is crucial for next session tomorrow that one of them to emerge as winner i.e. either get a trend up day or trend down day else chop around today’s VWAP and POC (Point of control) is given. Fail to sustain beyond PDL or PDH will attract back to VWAP — POC zone 22040–22060.
Today’s NC profile got failed auction at top and buying tail at low. Daily value is overlapping and two days of composite higher value but sellers got FA at top and they manage to stop three days of one time frame up move. Sellers job to monitor tomorrow, they should sustain below 22010 VAL and show acceptance in buying tail which will enable them to probe 21940 POC of 12/01 then 21880 extension handle and extreme case 21810 buying tail test of 12/01 profile.
Any failure on sellers part will likely go for test of 22040–60 VWAP-POC pivotal zone then could test 22090 two day composite POC. Sustaining above 22090 means FA test at 22138 then new ATH possible.
Swing wise bullish negation is at 21850. If this move down is just mean reversion for daily TF trend up move then it is likely to hold around 21900 zone max then bounce higher for trend up continuation. Instead if this move down scale below 21850 means reversal of trend likely.
