The step 2 which we spoke about last Wednesday is now showing it’s effect to everyone as two time frames dominate the market environment. Earlier today we got the first test of the 8084 mentioned in the weekly spot report and the Nifty promptly put in a 50 point bounce from there.
Nifty Oct F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-12-oct-16-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF profile was another Normal Variation day.
#) vwap of the day was at 8129 with volume of 109.1 L in a trade which worked an 8162-8093 range of 69 points
#) Day POC was at 8136 levels
#) we see an FA at 8248 levels and it is on day T+2
#) Larger structure beyond the daily is now into Step 2 of the process.
#) The OrderFlow of today shows sellers near 8146-8160 but buyers were seen as we dipped below 8110F.
#) Value areas are at 8148-8136-8124– 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 Oct F)
K.R.A is 8248 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8154 it could move to 8177 and 8208. SL for this view is 8121
Hypo 2) IF NF auctions below 8107 it could move to 8083 and 8048. Sl for this view is 8155
BankNifty Oct 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-12-oct-16-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile was a neutral center
#) vwap was at 17601 with volumes of 30.4 L in a trade which worked a 17688-17510 range of 178 points.
#) day POC was at 17592
# OrderFlow showed sellers at the higher prices today again near 17660
#) Profile is now ready to trend in one direction and we should be ready for a trend day anytime in the next 1- 3 sessions.
#) Current Profile is a 3-1-3 with excess at both ends. Bias is neutral.
#) Value areas are at 17634-17592-17556 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Oct Futures)
K.R.A is 17820 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17665 it could move to 17717 and 17805. Sl for this view is 17560.
Hypo 2) If BNF auctions below 17530 it could move to 17477 and 17395. SL for this view is 17630.
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.