Another day when the Nifty lost a great opportunity to rectify the orderflow imbalance above 8510F. That region is now firmly in control of the sellers putting pressure on the responsive buyers at 8440 who may not be able to hold up for long . Auction however finished balanced at the close.
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 showed weakness again at the open but strong responsive buying at the lows in a repeat of yesterday’s auction
#) vwap of the day was at 8481 with volume of 93.6 L ina trade which worked a 8531-8437 range
#) The Profile closed again near day vwap and POC today confirming a neutral position in the market
#) OrderFlow shows buyers at the lows near 8440 levels but the seller from 8540 is emerging stronger with every session.
#) Larger Auction is showing big buying support at lows but needs more buying strength above 8550 levels to progress higher. There is also a hint of the support base eroding.
#) Value areas are at 8524-8482-8466– 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 8441 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 8513 then it could move to 8544 . Sl for this view 8478.
Hypo 2) If NF auctions below 8441 it could move to 8411 and 8377. Sl for this view is 8487.
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 again saw buyers defending 18650 for the third straight day
#) vwap was at 18770 with volumes of 33.7 L in trade which worked a 18895-18614 range
#) The auction is back in the multi day balance area of the week prior.
#) OrderFlow shows minor selling near 18930 levels for the second straight session
#) Value areas are at 18870-18820-18720 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 18640 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 18910 then it could move to 19000.Sl for this view is 18810
Hypo 2) If BNF auctions below 18710 then it could attempt to move to 18640 and 18600 . Sl for this view is 18815