Levels and Plan for 18th Nov

The day after the trend day was 2-time frame in auction behavior and closed as a neutral center just above vwap and day midpoint. A neutral center after a trend day (which is domination by a single time frame), shows the market accepting the higher prices as value. Yesterday’s reference levels remain the same on upside and downside for continuation.

Nifty Nov F:

 

Nf_Compo1

 

 

Background / Previous Auctions :

Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-16-nov-20-nov15/

Observations in Today’s/ Previous sessions:

(based on Fut prices)

#) The NF was neutral center and in the upper half of yesterday’s profile

#) Vwap of the session was at 7839 with volumes of 103.9 L in a session which traded a range of 7880-7801

#) Day POC was at 7850 levels

#) A slowish auction off the open gathered pace when some strong buying emerged at 7820 to push it to 7880 but was countered by some very strong selling at 7876 which pushed the index lower.

#) Today’s profile puts value higher, but OrderFlow shows a very strong seller at 7870 plus which would be a matter of concern to the bull tomorrow.

#) Possibilities into tomorrow are a test of the 7820 buyers and the 7876 sellers giving way to a consolidating move or another outright trend day

#) Monday’s Profile put in a range extension at 7762-7770 and it will be an important support in the coming sessions

#) Buying tail minor at 7725 replaces the FA point of 7742.

#) 2 anomalies at 7794 and at 7762 which further stress the importance of the 2 levels for today’s bullish move

#) Profile again has support at 7795 in tomorrow’s session. However, the poor high seen at 7858 stands repaired.

#) Value areas are at  7860-7850-7830– 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 7918 ( K.R.A= key reference area)

 

Hypo1 ) If NF auctions above 7877 it could move to 7905 and 7934.  SL for this view is 7830

Hypo 2) IF NF auctions below 7822 it could move to 7796 and 7747. Sl for this view is 7862

BankNifty Nov F:

 

Bnf_Compo

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-16-nov-20-nov15/

Observations in Today’s/ Previous sessions:

(based on Fut prices)

#) The BNF started off as a trend day lower but finished in a b shaped profile.

#) Open was a drive towards value, however, the late afternoon response was very strong from the lows.

#) Vwap was at 17182 with volumes of 27.9 L in a session which traded a range of 17317-17065

#) day POC was at 17160 levels

#) The BNF is again showing excess above 17290 in line with the selling seen at these levels earlier. This reduces a very firm bullish bias seen yesterday and the auction needs to show the path as it dropped in the same value as yesterday.

#) The extension level of 17046- 17060 was well defended by the bulls today and it’s their only big takeaway for the day.

#) Excess at 16626 and 16760 is still the driver of the auction till the profile settles tomorrow.

#) The profile above today’s session highs moves to VPOC of 17400 and swing highs of 17522. 
#) Value areas are at 17238-17160-17124 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 17085  ( K.R.A= key reference area)

Hypo1 ) IF BNF auctions above 17252  it could move to 17339 and 17489. Sl for this view is 17130.

Hypo 2) If BNF auctions below 17050 it could move to 16997 and 16895. SL for this view is 17125.

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.