3 days of rotation around the POC of 7437, the scene of last week’s sharp pullback was broken today in a gap down which continued lower leaving excess again .We started looking at this move early Jan with a 7260 objective but as we hit that today, we are not running ahead and calling it a bottom. A trend needs to be treated with respect and only the immature run ahead and pick bottoms without managing the risk. Price and Volume are the most supreme and when the trend turns, volume and price would be the first to announce it. Till then ride.
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-18-jan-22-jan16/
(based on Fut prices)
#) The NF was a Normal Variation day today.
#) Vwap of the session was at 7295 again with volumes of 170.8 L in a session which traded a 7360-7233 range of 126 points
#) Day POC was at 7317 levels
#) The Profile had a convincing close below the 2-way balance seen between 7430 and 7620.
#) We identify 7430 zone with the big 150 point rise made last week with aggressive buying but now the same seems missing
#) Weakness can continue below 7240 and the NF can target 7144 if we go down below.
#) Confirmation of strength returning is only if we manage a close above 7380-7420 F again on the weekly
#) Value areas are at 7317-7316-7290– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 7382 F ( K.R.A= key reference area)
and the trend is lower.
BankNifty Jan F:
Background/ Previous Auctions :
Weekly levels: For Banknifty we have updated a spot auction view with a chart at: http://vtrender.com/nifty-bn-weekly-view-spot-for-18-jan-22-jan16/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF broke lower on a Normal Variation day setup.
#) vwap of the session was at 14866 with volumes of 39.9 L in a session which traded a 15060-14730 range of 330 points
#) day POC was at 14900 levels
#) The BNF continued driving value lower again today
#) Value areas are at 14930-14900-14810 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 14860 F ( K.R.A= key reference area)