We had a low volume trend up day today which took the markets a little higher than the recent 3 day range it has been in. During the process, the bounds of the balance moved higher but we still saw sellers coming in at higher prices and selling bids aggressively.The lower volume and the OrderFlow made a breakout uncertain. We watch 7893F and 16935 F for confirmation.
Nifty Sept F :
Background / Previous Auctions :
Weekly levels : We have done a review on weekly charts at : http://vtrender.com/nifty-bn-weekly-view-spot-for-14-sept-18-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The NF was again a slowish ORR with lesser vols
#) vwap of the day was at 7829 with volume of 102.9 L in a trade which worked a 7888-7765 range of 123 points
#) Day POC was also at 7870 levels and in the upper quarter
#) The NF tested Friday spike lows but stayed above it.
#) The auction still shows the presence of a responsive seller who is selling the higher prices.
#) The OrderFlow shows selling above 7885 levels today
#) Gap between profiles is 7944- 7961.
#) Weekly Auction shows a balance between 7875 and 7685 and we should see more volatility in this range.We are open to 8003 and 8096 F above 7892 F on short covering.
#) Value areas are at 7872-7868- 7812– 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 Sept F)
K.R.A is 7827 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 7912 then it could move to 7952 and 7972. Sl for this view 7871
Hypo 2) If NF auctions below 7827 it could move to 7785 and 7681 . Sl for this view is 7875
BankNifty Sept 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-14-sept-18-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile was also an ORR and moved higher all day
#) vwap was at 16763 with volumes of 35.4 L in a trade which worked a 16967-16522 range of 445 points.
#) day POC was at 16860 levels
#)OrderFlow shows buying at the lows for the fifth straight session
#) Gap between profiles is 17025- 17090.
#) Value areas are at 16912-16752-16704 for bias. . For using value areas effectively visit : http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Sept Futures)
K.R.A is 16746 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 17047 then it could move to 17201 and 17284 .Sl for this view is 16920
Hypo 2) If BNF auctions below 16750 then it could attempt to move to 16596 and 16219. Sl for this view is 16825
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.