Levels and Plan for 06th Nov

Bears gave a lesson today to the Bulls on how to take advantage of a gap. As opposed to yesterday’s open above the 2-day range of 8128- 8050, the bear dominated the gap today in his favor and on the retest of the 8128- 8050 balance we have been pointing out, came back stronger to close the session at day lows. The profile was a spike into the close.

Nifty Nov F:

 

Nf_Compo1

 

 

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 was a gaussian curve for till the last 45-minute spike into lows of 7975
#)  vwap of the day was at 8026 with volume of  106.9 L in a  trade which worked an 8055-7975 range of 80 points

#) Day POC was at 8038 levels

#) we see the auction below 8004 to 7975 as a spike and spike rules apply at open tomorrow.

#) Auction broke below the 8050 2 day lows today and headed lower to the weekly support 2 of 7945 spot as discussed in the weekly report

#) OrderFlow showed buyers from 8004 early in the session, but sellers returned on the second break below 8035 today

#) Value areas are at  8044-8038-8010– 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 8006 it could move to 8034 and 8109.  SL for this view is 7970

Hypo 2) IF NF auctions below 7953 it could move to 7920 and 7899. Sl for this view is 7984

BankNifty Nov F:

 

Bnf_Compo

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 worked into a b shaped profile at close
#) vwap was at 17106 again  with volumes of 30.0 L in a trade which worked a 17257-17018 range of 239 points.

#) day POC was at 17082 levels

#) OrderFlow shows selling at the top and the day was a long liquidation type
#) Value areas are at 17154-17082-17052 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 17169  it could move to 17252 and 17420. Sl for this view is 17066.

Hypo 2) If BNF auctions below 17010 it could move to 16927 and 16855. SL for this view is 17115.

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.