Even though we dipped lower on Friday below 7625 and hit 7580 there was evidence in the market today that the move was emotional selling and the balance we have been speaking about since Thursday is upon us and now visible in the charts we track. The BNF which until Friday was looking as the stronger of the 2 indices was, however, lacking in momentum today and is poised for a major move again as it hesitates in what looks like a multi-day DD against a single balanced distribution as shown by the NF
Nifty Dec F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-14-dec-18-dec15/
(based on Fut prices)
#) The NF was a normal variation day which closed just above vwap
#) Vwap of the session was at 7653 with volumes of 111.8 L in a session which traded a 7695-7579 range of 116 points
#) Day POC was at 7671 levels today and lower again.
#) We see a largish balance now developing between 7715 and 7585 which holds the keys to the moves for the rest of the series.
#) The FA at 7949 F has remained unvisited.
#) we see a composite POC at 7984 in the profile chart posted above and the bias is lower below it.
#) Value areas are at 7680-7671-7629– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
(based on Dec F)
K.R.A is 7510 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 7710 it could move to 7750 and 7775. SL for this view is 7672
Hypo 2) IF NF auctions below 7632 it could move to 7591 and 7505. Sl for this view is 7682.
BankNifty Dec 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-14-dec-18-dec15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was a normal day today with a largish auction between you and yvwap unable to decide a bias
#) Vwap was at 16404 with volumes of 28 L in a session which traded a 16498-16255 range of 244 points
#) day POC was at 16440 and higher than Friday
#) We see 16925F as resistance on any pullback this week.
#) Value areas are at 16464-16440-16344 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 16120 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 16467 it could move to 16550 and 16664. Sl for this view is 16360.
Hypo 2) If BNF auctions below 16303 it could move to 16219 and 16088. SL for this view is 16405.
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.