The Markets gapped lower today, but the Orderflow showed Buyers taking immediate control and they prevailed to close it at the higher end. However, Sept F showed heavy short buildup as we moved into higher prices.
Nifty Sept F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-21-sept-24-sept15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF gapped down today but recovered to close at session highs.
#) vwap of the day was at 7950 with volume of 144.9 in a trade which worked a 7992-7902 range of 90 points
#) Day POC was at 7954 levels and centered
#) The NF close was once again above the 3-day balance of last week.
#) The OrderFlow of today shows sellers at 7950 aggressively selling the higher prices and they did not close their positions in Sept
#) Value areas are at 7962-7950-7920– 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 Sept F)
K.R.A is 7920 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8015 it could move to 8046 and 8082. SL for this view is 7975
Hypo 2) IF NF auctions below 7954 it could move to 7924 and 7850. Sl for this view is 7995
BankNifty Sept 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-21-sept-24-sept15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile was a P-shaped profile again today for the second straight day
#) vwap was at 17432 with volumes of 39.8 L in a trade which worked a 17576-17181 range of 395 points.
#) day POC was at 17520 levels
#)OrderFlow shows buying near the lows today
#) Value areas are at 17552-17456-17360 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Sept Futures)
K.R.A is 17290 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17576 it could move to 17692. Sl for this view is 17466.
Hypo 2) If BNF auctions below 17429 it could move to 17292. SL for this view is 17535.
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.