After gapping up yesterday, the Nifty gapped down today were we saw OrderFlow going green alerting us to no new sell activity. However the close was in a spike which saw aggressive sell orders being hit at market, making the job of the bull that much more difficult at the Open tomorrow. A move above spike highs tomorrow can force short covering to 7881 and 7945 but staying below should invite 7780 again.
Nifty Sept F :
Background / Previous Auctions :
Weekly levels : We have done a review on weekly charts at : http://vtrender.com/nifty-bn-weekly-view-spot-for-07-sept-11-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The NF was again an OAOR open but saw a spike into the close.
#) vwap of the day was at 7745 with volume of 163.3 L in a trade which worked a 7838-7690 range of 148 points
#) Day POC was also at 7824 levels in the lower quarter of the range
#) The auction was removed from day vwap and POC and the Open has to be above the session high seen for continuation.
#) The OrderFlow did not show new selling below 7720 at the Open but sellers came in the spike upto 7838 levels
#) FA point of 7961 on 01/09 is the short term Bias point for the auctions
#) Gap between profiles is 7944- 7961.
#) Maintain – //Larger Auction shows 7643 (broken but weekly leans on 7520 F) as weekly support and we believe dips to this point will be used to build positions for 7950 again. SL for this view to play out is 7510 during the week.//
#) Value areas are at 7764-7722-7710– 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 Sept F)
K.R.A is 7842 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 7842 then it could move to 7881 and 7938. Sl for this view 7797
Hypo 2) If NF auctions below 7788 it could move to 7758 and 7727 . Sl for this view is 7818
BankNifty Sept 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-31aug-04-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile also shows a spike into the close
#) vwap was at 16396 with volumes of 47.4 L in a trade which worked a 16738-16187 range of 551 points.
#) day POC was at 16300 again in the lower 1/3 of the range
#)OrderFlow shows buying early in the session on the dip but sellers as we moved into higher prices
#) Gap between profiles is 17025- 17090.
#) Value areas are at 16488-16288-16240 for bias. . For using value areas effectively visit : http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Sept Futures)
K.R.A is 16550 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 16710 then it could move to 16817 and 16922 .Sl for this view is 16610
Hypo 2) If BNF auctions below 16550 then it could attempt to move to 16363 . Sl for this view is 16615
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.