Levels and Plan for 3rd Dec

The BankNifty trended sharply lower after the excess seen yesterday to the balance zone of 23- 26 Nov. The Nifty had a more casual drop on lower volumes and finished near vwap/ dpoc of the session. Moving a time frame higher, we see Nifty spot not entering the VAL mentioned in the weekly post to firm up our bullish conviction. Bears have to close the index below 7875- 7895 spot to close the doors on bulls in this mini upmove.

Nifty Dec F:

Nf_Compo1 1

 

 

 

Background / Previous Auctions :

Weekly levels: We have done a review on weekly charts at:http://vtrender.com/nifty-bn-weekly-view-spot-for-30-nov-04-dec15/

Observations in Today’s/ Previous sessions:

(based on Fut prices)

#) The NF was a Normal Variation day with a close bear previous session lows.

#) Vwap of the session was at 7964 with volumes of 75.2 L in a session which traded an 8003-7935 range of 67 points

#) Day POC was at 7954 levels.

#) The Profile was b shaped indicating early long liquidation but the rise to vwap and the POC push up shows shorts covering too.

#) we see a composite POC at 7984 in the profile chart posted above

#) 7910 NF is the support roughly now below the index can drop to 7848 and even 7782 quickly

#) Value areas are at  7970-7954-7944– 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 Dec F)

K.R.A is 7905 ( K.R.A= key reference area)

 

Hypo1 ) If NF auctions above 7982 it could move to 8005 and 8049.  SL for this view is 7946

Hypo 2) IF NF auctions below 7936 it could move to 7912 and 7889. Sl for this view is 7987

BankNifty Dec F:

Bnf_Compo

 

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-30-nov-04-dec15/

Observations in Today’s/ Previous sessions:

(based on Fut prices)

#) The BNF trended lower today in a b shaped profile

#) Vwap was at 17321 with volumes of 27.5 L in a session which traded a 17530-17232 range of 298 points

#) day POC was at 17274 levels 

#) The BNF also has moved to the edge of the profile dated 23/11 but shows huge selling from 17580 now shifting the immediate bias lower.

#) Value areas are at 17316-17274-17238 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/

 

Hypothesis :

( Based on Nov Futures)

K.R.A is 17080  ( K.R.A= key reference area)

Hypo1 ) IF BNF auctions above 17392  it could move to 17485 and 17620. Sl for this view is 17290.

Hypo 2) If BNF auctions below 17180 it could move to 17085 and 17020. SL for this view is 17285.

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.