We saw aggressive buying at 7980 early in the day, a round of selling near 8055 and another round of buying near 7962 which helped close the indices near vwap. At the close we had a failed auction at 7961 F as a reference point for the next few sessions.
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-31aug-04-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The NF was a balanced session with a close near vwap and POC
#) vwap of the day was at 8009 with volume of 134.0 L in a trade which worked a 8068-7961 range of 107 points
#) Day POC was centered at 8000 today
#) TheOrderFlow shows morning buyers defending the dip late afternoon.
#) FA noticed at 7961 F.
#) Larger Auction is positive above 7961 F but once broken sell side pressure can rise rapidly.
#) Value areas are at 8024-8000-7978– 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 8074 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 8037 then it could move to 8074 . Sl for this view 8008.
Hypo 2) If NF auctions below 7961 it could move to 7927 and 7891. Sl for this view is 7999
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-31aug-04-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile tested the upper boundary of the second distribution of friday and moved lower
#) vwap was at 17267 with volumes of 30.9 L in trade which worked a 17430-17090 range of 339 points.
#) day POC was in the lower half and at 17200 levels
#) We see a selling tail at 17424 to confirm with the sellers seen at this region on friday
#) OrderFlow shows sellers dominating the zone from 17450 to 17200 now
#) Value areas are at 17328-17200-17136 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 17466 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 17310 then it could move to 17425 .Sl for this view is 17210
Hypo 2) If BNF auctions below 17150 then it could attempt to move to 17080 . Sl for this view is 17219
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.