At the close the NF and the BNF were coiled and inside the previous session’s range. Auction market Theory points to a trend day next and we will monitor our volume charts to give us pointers to OTF influence showing us the move to come.
Nifty Oct F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-12-oct-16-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF profile was a neutral center
#) vwap of the day was at 8129 with volume of 84.9 L in a trade which worked an 8148-8107 range of 41 points
#) Day POC was at 8130 levels
#) we see an FA at 8248 levels and it is on day T+3
#) Larger structure beyond the daily is now into Step 2 of the process.
#) The OrderFlow of today shows sellers near 8146 again but the buyer who defended 8108 yesterday was seen again.
#) Value areas are at 8132-8130-8118– 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 Oct F)
K.R.A is 8248 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8136 it could move to 8175 and 8189. SL for this view is 8101
Hypo 2) IF NF auctions below 8107 it could move to 8079 and 8068. Sl for this view is 8145
BankNifty Oct 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-12-oct-16-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile was a normal variation
#) vwap was at 17580 with volumes of 23.4 L in a trade which worked a 17645-17500 range of 138 points.
#) day POC was at 17586 again
# OrderFlow showed sellers at the higher prices today again near 17640
#) Profile is now ready to trend in one direction and we should be ready for a trend day anytime in the next 1- 3 sessions.
#) Current Profile is a 3-1-3 with excess at both ends. Bias is neutral.
#) Value areas are at 17604-17586-17562 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Oct Futures)
K.R.A is 17820 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17665 it could move to 17743 and 17780. Sl for this view is 17560.
Hypo 2) If BNF auctions below 17510 it could move to 17447 and 17401. SL for this view is 17610.
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.