Viren had mentioned in the comments today how the CE writers at 5400 and the PE writers at 5200 have been adding Open Interest.
Girish had put in a request for profile charts.
Here they are for the past two weeks, nine trading sessions :
Notice the supply coming in at levels of 5320 and 5344 and the value slowly drifting lower.
We maintain that the market needs to close above 5367 for the bias to turn upwards.
Till then every move up to 5244 will be sold into.
Here's another look at the chart from a weekly perspective.
The value area on the right is developing and will take into account the auction tomorrow.
However the lower value created is clearly visible.
On an hourly timeframe we have been held up at 5225 where buyers have showed up.
But the charts clearly show the on an end-of-day basis there are dark clouds looming over for the bulls in the market.
If things don't change a lot tomorrow, then next week 5225 is surely to break.
Join me then to catch the action as it happens.
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4 comments:
Shai,
U the man! Thanks a lot for positing very detailed charts with explanation.
Regards,
Girish
Just a few cents from my side.
VWAP - Volume Weighted Average Price is another metric very similar to POC - VWAP signifies the average price of transaction.
I use to see if sellers are in control or buyers during the day. One can see the VWAP of Nifty Futures from NSE site:
http://www.nseindia.com/marketinfo/fo/foquote.jsp?key=FUTIDXNIFTY29JUL2010--01JUL2010&symbol=NIFTY&flag=1
The difference between POC and VWAP (as I understand) is POC is like the median - of price and VWAP is the volume average of the price.
Girish,
Good views.
VWAP is a very good study and most profilers use it in their charts.
As you said, price above poc and vwap point to an upmove and vice-versa.
New post done.
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