The big trend day of Friday came off a MO reading of -71. The McClellan remains by far our best indicator at tipping points to tell us which side the auction is getting driven by emotional players. It helps to manage risk on an existing position as well as prepare for a fierce counter trend move of the kind we saw on Friday.
Nifty Aug F :
Background / Previous Auctions :
Weekly levels : We have done a review on weekly charts at : http://vtrender.com/nifty-bn-weekly-view-spot-for-17-aug-21-aug15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The NF profile broke away from the 2 day balance and was imbalanced at the close
#) vwap of the day was at 8489 with volume of 133.6 L ina trade which worked a 8553-8402 range
#) The Profile closed near day highs today
#) OrderFlow shows sellers coming into the rise especially from 8489 levels.
#) Larger Auction is showing big buying support at lows but needs more buying strength above 8550 levels to progress higher
#) Value areas are at 8550-8544-8486– 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 Aug F)
K.R.A is 8488 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 8596 then it could move to 8647 . Sl for this view 8551
Hypo 2) If NF auctions below 8555 it could move to 8522 and 8500. Sl for this view is 8587.
BankNifty Aug 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-17-aug-21-aug15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile went back into imbalance and back to test the seller at 18840 F
#) vwap was at 18542 with volumes of 42.7 L in trade which worked a 18840-18222 range
#) The auction cleared 18440 range extension point and moved 400 points higher
#) OrderFlow shows buying at the lows and some more near 18650 levels but buyers were not seen above 18800 levels
#) Value areas are at 18840-18708-18464 for bias. . For using value areas effectively visit : http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Aug Futures)
K.R.A is 18590 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 19005 then it could move to 19150. Sl for this view is 18801
Hypo 2) If BNF auctions below 18850 then it could attempt to move to 18640 and 18570 . Sl for this view is 18915