It was 2 auctions rolled into 1 today. An initial probe down met with short covering/ buying which pushed the index back to the day highs. At the close the bulls had more reason to be happier on the day as they fought back from a losing position and forced bears to retreat. But the seller at 7600- 7620 is still holding his position and selling.
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-11-jan-15-jan16/
(based on Fut prices)
#) The NF was a neutral day
#) Vwap of the session was at 7523 with volumes of 223.5 L in a session which traded a 7603-7428 range of 175 points
#) Day POC was at 7572
#) The composite POC at 8022 from dec still holds the bias
#) The auction of today was a typical break on inside day pattern but the reversal was sharp and took the auction back in the 2-day range.
#) we feel the next move should be upwards towards 7630/40 and there are chances of it being rejected as well and the NF coming back again to this close in 1- 3 sessions
#) It’s clear from today’s auction that the second time frame is active and we have a 2 way mode developing again.
#) Value areas are at 7599-7572-7491– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 7762 F ( K.R.A= key reference area)
and the trend is down on the shorter time frame
BankNifty Dec 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-11-jan-15-jan16/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was also a 2-time frame neutral day
#) vwap of the session was at 15762 with volumes of 48.8 L in a session which traded a 15974-15536 range of 438 points
#) day POC was at 15912 levels
#) Auction is showing a sideways nature now and 16200 is the resistance at highs
#) We feel an upmove to probe sellers in the next 1- 3 sessions to 16200 can meet new selling business and the auction can close back near 15840
#) Value areas are at 15952-15912-15664 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 16525 F ( K.R.A= key reference area)