Friday was again a 2-time frame market with a Buyer at the lows and previous session’s vwap and a seller at the KRA and the extension high of 7924. Overall the Nifty had a better weekly close after a gap down on Monday earlier and we wait to see early in the week if it can push above the 7920- 40 mark.
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-23-nov-27-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF was a Normal Variation day.
#) Vwap of the session was at 7883 with volumes of 139.7 L in a session which traded a range of 7924-7822 of 102 points
#) Day POC was at 7912 levels
#) In OrderFlow on Friday we saw longs being created in Dec Futures early in the day but were closed later in the session
#) Nov Futures showed a wave of selling as the index crossed 7885 and they managed to pull the index down by the close.
#) The Profile of the last 4 sessions is a largish P showing non-acceptance below 7800 and accepting 7820- 7860 as value.
#) Value areas are at 7918-7912-7860– 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 7884 it could move to 7920 and 7993. SL for this view is 7830
Hypo 2) IF NF auctions below 7816 it could move to 7781 and 7752. Sl for this view is 7867
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-23-nov-27-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was a normal variation day
#) Vwap was at 17151 with volumes of 41.4 L in a session which traded a range of 17349-16942 of 408 points
#) day POC was at 17268 levels
#) We saw excess again at 17349 today
#) Excess at 16626 and 16760 still remains, though.
#) Larger structure is hinting at a neat balance between these 2 excesses.
#) Value areas are at 17286-17268-17058 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 17345 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17198 it could move to 17336 and 17626. Sl for this view is 17090.
Hypo 2) If BNF auctions below 16920 it could move to 16877 and 16790. SL for this view is 17025.
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.