Friday we had a neutral extreme day in the markets which closed below the Oct series vwap of 8111 spot. We have had 5 straight sessions of value lower and a balance is not yet seen. The seller remains in control of the trend he altered on Wednesday.
Nifty Nov F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-02-nov-06-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF profile was a neutral extreme day which closed at lows
#) vwap of the day was at 8136 with volume of 120.7 L in a trade which worked an 8182-8066 range of 116 points
#) Day POC was at 8098 levels
#) Auction closed below series vwap today and we are looking at the possibility of a bounce from these levels. However, the sellers will remain in the driving seat till Nov F does not close abv 8174 F.
#) OrderFlow was mixed in the session and a big buyer at 8124 was forced to liquidate his position.
#) Value areas are at 8154-8098-8080– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
#) Discl – When we mention Buyers/ Sellers we point to and infer aggressive players.
Hypothesis :
(based on Nov F)
K.R.A is 8122 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8122 it could move to 8162 and 8182. SL for this view is 8080
Hypo 2) IF NF auctions below 8044 it could move to 8004 and 7987. Sl for this view is 8084
BankNifty Nov 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-02-nov-06-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile was an inside day as value went sideways for the first time in 5 sessions
#) vwap was at 17388 again with volumes of 32.6 L in a trade which worked a 17488-17222 range of 266 points.
#) day POC was at 17430 levels
#) OrderFlow shows heavy selling again near 17488
#) Value areas are at 17466-17430-17370 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Nov Futures)
K.R.A is 17050 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17500 it could move to 17592 and 17688. Sl for this view is 17390.
Hypo 2) If BNF auctions below 17322 it could move to 17233 and 17050. SL for this view is 17415.
All Hypos to be traded with the mentioned stops and mechanically. If in the trading room, can use the Order Flow to qualify the entry and exit for the hypos.