An open test drive below yesterday sellers saw no new selling and the market came back into the balance area we have been mentioning all of these past few days. It’s been a series where the otherwise savvy Option writers have not been as sure about the close on settlement. For us, we lean on series vwap at 7828 as the decider for settlement as well as the few sessions into next month.
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-21-sept-24-sept15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF gapped lower but just like Monday saw buying and came back into old balance zone
#) vwap of the day was at 7807 with volume of 178.3 L in a trade which worked a 7889-7713 range of 175 points
#) Day POC was at 7770 levels near the lower half
#) The selling which was missing yesterday came back at around 7850- 70 levels.
#) The NF closed near the highs of the 3-day balance of last week.
#) The OrderFlow of today shows sellers at 7850-7870 late in the session
#) Value areas are at 7842-7770-7734– 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 7920 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 7890 it could move to 7920 and 7980. SL for this view is 7845
Hypo 2) IF NF auctions below 7802 it could move to 7741 and 7597. Sl for this view is 7855
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-21-sept-24-sept15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile was a drive above 16900 near the Open and closed at the highs
#) vwap was at 17061 with volumes of 57.6 L in a trade which worked a 17325-16750 range of 574 points.
#) day POC was at 17264 levels
#)OrderFlow shows sellers coming near the highs near 17300.
#) Value areas are at 17296-17264-16944 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 17120 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17310 it could move to 17411 and 17511. Sl for this view is 17216.
Hypo 2) If BNF auctions below 17128 it could move to 17061 and 16929. SL for this view is 17228.
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.