On a gap up Open, the markets lost a great opportunity to pull out of the 8050- 8128 range and reach for the expiry seller near 8180. We did sense opportunity for a long trade as long as 8085 was holding, but in the closing hour a sell-off followed which took the market down to previous session lows again. Once again it was proved- From failed moves come fast moves.
Nifty Nov F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-02-nov-06-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF opened as an ORR and went lower all day.
#) vwap of the day was at 8106 with volume of 87.7 L in a trade which worked an 8145-8057 range of 87 points
#) Day POC was at 8122 levels
#) Maintain //Auction needs to show more buying above 8124 or sellers below 8050 for continuation.//
#) OrderFlow shows sellers near 8128, but there weren’t many sellers as the index went lower later in the day
#) Value areas are at 8136-8122-8094– 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 Nov F)
K.R.A is 8132 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8092 it could move to 8122 and 8180. SL for this view is 8060
Hypo 2) IF NF auctions below 8033 it could move to 7998 and 7956. Sl for this view is 8074
BankNifty Nov 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-02-nov-06-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was an open drive which moved lower into close.
#) vwap was at 17401 again with volumes of 25.2 L in a trade which worked a 17525-17243 range of 282 points.
#) day POC was at 17400 levels
#) OrderFlow shows selling at the top but was progressively reduced as the day progressed.
#) Value areas are at 17484-17400-17346 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Nov Futures)
K.R.A is 17050 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17366 it could move to 17463 and 17716. Sl for this view is 17266.
Hypo 2) If BNF auctions below 17180 it could move to 17080 and 17050. SL for this view is 17285.
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.