A gap up instead of getting new buyers saw eager sellers piling in to sell as well as long liquidating which was enough to drop the index 148 points before a recovery came from about the same place as yesterday. The close was again lower on day.
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-18-jan-22-jan16/
(based on Fut prices)
#) The NF was a Normal Variation day today with singles again at the top.
#) Vwap of the session was at 7311 again with volumes of 190.2L in a session which traded a 7401-7253 range of 148 points
#) Day POC was at 7284 levels
#) The Profile had another convincing close below the 2-way balance seen between 7430 and 7620.
#) In trades today we shorted NF at 7340 which we covered fully around 7295 for a net 45 points
#) We also shorted NF again at 7280 but covered a part of the position at 7255 for a net 25 points
#) We identify 7430 zone with the big 150 point rise made last week with aggressive buying but now the same seems missing
#) Weakness can continue below 7240 and the NF can target 7144 if we go down below.
#) Confirmation of strength returning is only if we manage a close above 7380-7420 F again on the weekly
#) Value areas are at 7326-7284-7266– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 7382 F ( K.R.A= key reference area)
and the trend is lower.
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was also a Normal Variation day setup with singles at the highs
#) vwap of the session was at 15105 with volumes of 52 L in a session which traded a 15360-14901 range of 460 points
#) day POC was at 14900 levels
#) In trades today, we shorted BNF at 15270-15280 and closed fully at 15085 for a net 200 points
#) We also attempted a second short at 15040 lower but we scratched it at cost in view of the higher volatility.
#) Value areas are at 15200-15120-15024 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
K.R.A is 14860 F ( K.R.A= key reference area)