Tom is expiry day and the auction will be dictated by the response of the 8200 put writers early in the session. Profile wise we saw a DD today after the neutral center yesterday. Though the auction has been slowish, the seller has the upper hand and we wait out the establishment of a balance before taking contra exposure. 8111 is the support level for the auction and then the series vwap of 8086 into Nov.
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-26-oct-30-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF profile was a DD
#) vwap of the day was at 8189 with volume of 136.7 L in a trade which worked an 8225-8140 range of 83 points
#) Day POC was at 8204 levels
#) Auction has support at 8130 tomorrow but if that is broken it may drop to 8097.
#) OrderFlow shows sellers at higher prices in Nov
#) Value areas are at 8218-8204-8172– 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 8340 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8215 it could move to 8242 and 8281. SL for this view is 8185
Hypo 2) IF NF auctions below 8155 it could move to 8129 and 8095 . Sl for this view is 8196
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-26-oct-30-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile trended lower all day
#) vwap was at 17533 with volumes of 42.1 L in a trade which worked a 17722-17310 range of 412 points.
#) day POC was at 17688 levels
#) Pull back highs at 17935 in the BNF would continue as resistance
#) OrderFlow shows heavy selling near the Open today.
#) Value areas are at 17718-17688-17436 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 17650 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17580 it could move to 17723 . Sl for this view is 17475.
Hypo 2) If BNF auctions below 17305 it could move to 17160 and 17030. SL for this view is 17415.
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.