Failed auction revisted.

Monday's lows of 5437 which we had described as a failed auction in this post here and called for a revisit this week based on the Market profile " Failed Auction theory" was done today

In fact the lows of the day were the failed auction point of 5437/ 38.

As with other concepts of Market profile, this theory has an amazing success rate and one can easily play 2 way moves of a min 70 points in both directions once the set-up is spotted.

Here are the order Flow charts of the morning, which confirm what profile told us in the morning, the presence of a strong seller off the open :

Nifty :

We do not account for the signals which come in last 10 mins of trade as they are due to intra day profit booking/ short covering.

The OF was red throughout the day

Bank Nifty :

Profile charts also showed the presence of a strong seller at 10835 levels, who took the market to Monday lows.

ICICI :

The poor lows at 1032 from 13/6 were revisted

SBI :

A clear rejection of yesterday's normal distribution in SBi took the market lower today