If yesterday was a Normal day in the NF, today we had a normal day in the BNF as both indices moved differently. Off a strong Open the NF trended into supply where it remained for the rest of the day. The move above weekly VAH we mentioned in the weekend post is on track but the rising risk in the market makes us reduce long exposure and buy put protection. However Dominant sellers are not yet visible in the auction.
Nifty July F :
Background / Previous Auctions :
Weekly levels : We have done a review on weekly charts at : http://vtrender.com/nifty-bn-weekly-view-spot-for-13-july-17-july15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) NF Profile trended higher off the Open which was the POC of yesterday.
#) vwap of the day was at 8530 with volume of 95.4 L (Same as the Previous session)
#) The Day type was a P shaped profile which went into previous supply zone of 07/07.
#) The excess of 07/07 is right above at 8560
#) we see a buying tail for 8464 in today’s profile which is new support for the index.
#) Auction is on track for higher levels near 8630 per the weekly plan but risk is rising for new positions and the market may pullback form a higher level anytime.
#) Value areas are at 8544-8540-8528 – 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 July F)
K.R.A is 8514 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 8575 then it can move to 8608 and 8631. . Sl for this view 8539
Hypo 2) If NF auctions below 8514 it can move to 8488 and 8440. Sl for this view is 8555
BankNifty July 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-13-july-17-july15/
The Banknifty view is in the above link below the Nifty view.
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile was a normal day
#) vwap was at 18898 again with volumes of 22.5 L (Less than the previous session)
#) Day was inside yesterday’s range
#) Profile shows a vwap and POC at the same point as yesterday
#) Day shows a Failed Auction at 18581 at the lows of Friday and another at 19008 at the highs of Tuesday.
#) Value areas are at 18930-18880-18875 for bias. . For using value areas effectively visit : http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Futures)
K.R.A is 18848 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 18945 then it can move to 18990 and 19055. Sl for this view is 18870.
Hypo 2) If BNF auctions below 18845 then it should attempt to move to 18800 and 18724. Sl for this view is 18920