The open of Friday was above the Pull back high (PBH ) of Thursday. If you have been with us in this Market Profile journey for a while, then you would know that PBH are all about inventory adjustment. On Friday, the market found itself on the wrong side of Thursday’s PBH and rallied off in the opposite direction on short covering.
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-25-jan-29-jan16/
#) The NF was a P-shaped profile with anomalies pointing to a poor structure in the rise ( poor OrderFlow also)
#) Vwap of the session was at 7401 again with volumes of 155.7 L in a session which traded a 7438-7334 range of 104 points
#) Day POC was at 7410 levels
#) The Profile today closed at the composite POC of the last few sessions
#) In trades today we missed getting a fill at 7450 early today but scalped a long near 7400 for a few points later
#) We went short 7400 CE at the close to gain from the falling vix and the shortened week ahead.
#) We identify 7430 zone with the big 150 point rise made last week with aggressive buying but now the same seems missing
#) However we identify the zone for a 2-way move and will keep 2 options open here for intra trades.
#) Value areas are at 7434-7410-7392– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 7344 Jan F ( K.R.A= key reference area)
and the trend is going sideways now.
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-25-jan-29-jan16/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was also a P-shaped profile with poor structure in the rise
#) vwap of the session was at 15466 with volumes of 43.4 L in a session which traded a 15607-15261 range of 346 points
#) day POC was at 7410 levels
#) In trades today, we looked to short BNF at the same point as Thursday around 15280 levels but avoided the trade as price did not flow below 15260 like Thursday. 15260 was the day pivot and BNF made lows there.
#) The BNF has a wave of sellers near 15800 F higher.
#) For now the move is above the singles of the past two days but the structure has anomalies which does not give a huge plus to the long side.
#) Value areas are at 15592-15512-15448 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 15160 JanF ( K.R.A= key reference area)