Levels and Plan for 4th Jan

We got a double distribution on Friday on very poor volume of 58L. 7958 is roughly the extension point and we look to Monday open to see if we stay above or below this point at the open to qualify the move seen late Friday

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-04-jan-08-jan16/

(based on Fut prices)

#) The NF was a double distribution day

#) Vwap of the session was at 7959 with volumes of 58.8 L in a session which traded a 7994-7922 range of 72 points

#) Day POC was at 7980 and in the upper of the 2 distributions which are a pointer to higher volumes seen there

#) The NF closed above a 3-day balance seen between 7910 and 7965

#) The composite POC at 8022 from dec still holds the bias 

#) Value areas are at  7989-7980-7947– 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 Jan F)

K.R.A is 8032 ( K.R.A= key reference area)

 

Hypo1 ) If NF auctions above 8006 it could move to 8031 and 8061.  SL for this view is 7960

Hypo 2) IF NF auctions below 7957 it could move to 7935 and 7873. Sl for this view is 7997.

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-04-jan-08-jan16/

Observations in Today’s/ Previous sessions:

(based on Fut prices)

#) The BNF was also a Double distribution day 

#) Vwap was at 16985 with volumes of 20 L in a session which traded a 17144-16823 range of 322 points

#) day POC was at 17096 levels 

#) Value areas are at 17135-17100-16910 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 17210  ( K.R.A= key reference area)

Hypo1 ) IF BNF auctions above 17210  it could move to 17314 and 17362. Sl for this view is 17110.

Hypo 2) If BNF auctions below 16985 it could move to 16877 and 16800. SL for this view is 17085.

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.