The Markets gapped up, met some aggressive buying, then as IB was closing it met aggressive sellers who managed to push the index below the developing vwap for a close near session lows. The OrderFlow showed heavy shorts coming in above 8020 levels whose conviction can be gauged by the fact that not many times the vwap of a trending day gets broken in the second half.
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 up but gave up all the intra-day gains by close
#) vwap of the day was at 8013 with volume of 180.9 in a trade which worked an 8059-7954 range of 105 points
#) Day POC was at 8030 levels and in the upper half
#) The NF close was above the 3-day balance of the week.
#) The OrderFlow shows sellers at 8020 aggressively selling the higher prices
#) Value areas are at 8046-8028-7986– 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 8001 it could move yo 8036 and 8092. SL for this view is 7965
Hypo 2) IF NF auctions below 7920 it could move to 7883 and 7850. Sl for this view is 7965
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 based on short covering early in the session.
#) vwap was at 17467 with volumes of 58.4 L in a trade which worked a 17642-17090 range of 552 points.
#) day POC was at 17500 levels
#)OrderFlow shows selling near 17550 and above.
#) Value areas are at 17568-17520-17360 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 17198 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17566 it could move to 17757. Sl for this view is 17446.
Hypo 2) If BNF auctions below 17198 it could move to 17016. SL for this view is 17305.
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.