Friday was a big down day in the Nifty and the range traded on Friday was about 485 points in a session. It made it the second biggest session after the big volatile drop of Nov 8 2016. To put that range into perspective the Nifty does an average of 480- 520 points in a month
Many people plot volume under a price bar and look at it as some kind of a confirmation indicator to what price is doing.
But when the day has already done 480 points between the highs and the lows what benefit are you going to get by looking at the Volume below a bar?
The answer is to look at Volume inside the bar. And that’s where our blog is positioned. It’s Volume at price not under price which can help you. Volume at price is the advanced utilization of Market Profile
The holiday-shortened week saw a sharp rejection of the prior Friday’s auction on Monday itself and we saw initiative sellers at the Open on Monday . The Failed auction point of 11297 was visisted on Tuesday itself and on wednesday when we traded below the FA point there was no visible supply seen in the OrderFlow charts. On Friday the auction bounced higher but saw transition volume coming at 11350 and once 11315 was broken again the selling increased exponentailly to drop the index to a low of 11005 where some responsive buying was seen.
Into the coming week’s auction, we now have a selling tail at 11490 and a buying tail at 11005 which promise to keep the auction again range bound for some time.
There is a good chance that we may trade between 11490- 11005 for most of the coming week and the rest of October.
A few other settlement-related thoughts
a) The Nifty has traded the September series with a vwap of 11477 and the Highest Volume during the series has come at 11462
b) The BankNifty has traded the September series with a vwap of 26959 and the Highest Volume during the series has come at 27380
The series of August was traded with a vwap of 11444 and highest volume during the series came at 11480.
This makes this zone a formidable resistance for the months ahead.
Up ahead we have seen a failed auction near 11602 ( equivalent to 11650F) which is the next higher supply
The BN traded August with a vwap of 27923 and highest volume was traded at 28280.
Nifty Weekly Profile ( spot) :
and an expanded chart of the Nifty Sept Futures
The week was traded in a range of range 11465-10866 with a POC at 11386
The Profile has a selling excess at the top near 11465 indicating long liquidation and an addition of short positions.
There is also excess at 10866 lower which was the POC of the July series
Early support can be seen now at 10940 in the MarketProfile charts
Supply expected to come back around 11350- 11380 zone this coming week.
These are our weekly projections and broadly the Trading setups we would look at to trade in the coming week subject to a confirmation from our OrderFlow charts. We employ principles of Auction market theory and Volume Profile analysis for our day trading and swing trading needs.
To know more about how we use this kind of technical analysis and to stay updated with areas of support and resistance and get actionable trading setups subscribe to the VTR ( Vtrender Trading Room). More info at-https://vtrender.com/trading-room/. Pricing details at – https://vtrender.com/pricing/
BankNifty Weekly Profile ( spot) :
and an expanded chart of the Bank Nifty Sept Futures. We also have Live BankNifty Option charts working on Market Profile in the Vtrender Trading Room.
The banknifty traded a 27002-25053 range during the week.
Largest volume was traded at 26442 during the week
The 27000 spot zone has the initiative big seller of the previous week.
The spot closed near resistance and would continue to be weak below 25977 roughly
These are our weekly projections and broadly the Trading setups we would look at to trade in the coming week subject to a confirmation from our OrderFlow charts. We employ principles of Auction market theory and Volume Profile analysis for our day trading and swing trading needs.
We work closely with Banknifty futures and BankNifty Options and these charts are Live in the Trading room showing price and volume history.
To know more about how we use this kind of technical analysis and to stay updated with areas of support and resistance and get actionable trading setups subscribe to the VTR ( Vtrender Trading Room). More info at-https://vtrender.com/trading-room/. Pricing details at – https://vtrender.com/pricing/