Yesterday was a Neutral Center ( NC) and we made a mention of the 7820 Buyers and the 7876 F sellers in yesterday’s report. Once again we trended out of the NC as the 7820 buyers gave up after early morning resistance and the NF trended lower rest of the session to meet the Buying tail of 7825. At the close the profile was imbalanced and signalling a move back to 7777 which is a low-risk high reward short entry for the auction to complete the move to either 7699 or 7639 on the day volumes
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-16-nov-20-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF was a normal variation but was 2 different auctions rolled into 1 with another extension handle at 7806.
#) Vwap of the session was at 7799 with volumes of 129.9 L in a session which traded a range of 7854-7725 of 130 points
#) Day POC was at 7730 levels
#) Once again the auction was slowish in the morning but once the 7820 buyers from yesterday were forced out the index dropped 100 points lower.
#) Auction finished in imbalance and with a poor low taking out the small buying tail seen at 7825. It suggests a break and look below 7825F
#) OrderFlow showed buyers as we looked below 7777 to 7725 and a retest of 7777 sets up a lucrative trade opportunity tomorrow.
#) Today’s Profile put in a range extension at 7806-7812 and it will be an important resistance in the coming sessions
#) Per our weekly plan we now have 7840 spot not showing new buying and the auction again leans on 7684 spot for support.
#) Value areas are at 7820-7730-7725– 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 7777 it could move to 7816 and 7914. SL for this view is 7730
Hypo 2) IF NF auctions below 7722 it could move to 7696 and 7639. Sl for this view is 7777
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-16-nov-20-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF could not pierce through the VAH of yesterday’s profile and once below VAL collapsed to close at day lows
#) Open was a an OAIR and the initial period was entirely in yesterday’s value. The imbalance began from VAL.
#) Vwap was at 17036 with volumes of 33.9 L in a session which traded a range of 17235-16787 of 448 points
#) day POC was at 16830 levels
#) Yesterday’s excess at 17320 is now the driver and by the close the BNF was close to the first of the earlier 2 excesses at 16760 and 16626
#) Excess at 16626 and 16760 still remains though.
#) The profile closed in imbalance and could target 16626 and 16510 in the coming sessions.
#) Value areas are at 17125-16830-16795 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 17085 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 16940 it could move to 17094 and 17279. Sl for this view is 16830.
Hypo 2) If BNF auctions below 16790 it could move to 16735 and 16625. SL for this view is 16895.
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.