The Nifty broke the series vwap of 8446 today on above avg volumes ( day high of 8447) putting the ball firmly with the previous buyers at 8330- 8300 to lift the market up again. Support lower is at 8255 on the index . The BN continued the imbalance with another sharp trending move mid afternoon after what looked like a start of balance around 18400.
Nifty Aug F :
Background / Previous Auctions :
Weekly levels : We have done a review on weekly charts at : http://vtrender.com/nifty-bn-weekly-view-spot-for-10-aug-14-aug15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The NF opened below lows and failed at vwap mid afternoon to trend lower into the close
#) vwap of the day was at 8415 with volume of 129.6 L ina trade which worked a 8457-8355 range
#) The Profile shows a move below VAL and an extension below IBL for the third straight day suggesting big OTF presence.
#) However as the day progressed OrderFlow did not show aggressive selling at the lows and the lows made were more of emotional players closing positions
#) Larger Auction headed to the buyers near 8320 but the imbalance seen still can bring 8270/ 8214.
#) Value areas are at 8450-8430-8394– 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 Aug F)
K.R.A is 8320 ( K.R.A= key reference area)
Hypo 1) If NF auctions below 8320 then it could move to 8285 and 8270 . Sl for this view 8361
Hypo 2) If NF auctions above 8404 it could move to 8436 and 8469. Sl for this view is 8359.
BankNifty Aug 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-10-aug-14-aug15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile was a trend day lower
#) vwap was at 18383 with volumes of 41.1 L in trade which worked a 18600-18094 range
#) The auction went much below the expected 18440 and the range extension could change the trend of the past few months.
#)
#) Value areas are at 18555-18490-18230 for bias. . For using value areas effectively visit : http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Aug Futures)
K.R.A is 17930 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 18260 then it could move to 18318 and 18400. Sl for this view is 18160.
Hypo 2) If BNF auctions below 18080 then it could attempt to move to 17980 . Sl for this view is 18185