A gap up was not utilised by the bulls to add long exposure and the market drifted back into the previous session lows and even probed lower. We saw a mix of long liquidation and short covering in the OrderFlow today but since bulls are not making an attempt to drive prices higher, the path of least resistance remains lower. Of importance to us would be, whether we close below 7764 F tomorrow or not.
Nifty Dec F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-07-dec-11-dec15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF was a Neutral variation day
#) Vwap of the session was at 7818 with volumes of 71.9 L in a session which traded a 7860-7790 range of 70 points
#) Day POC was at 7808 levels near yesterday.
#) The Profile shows us an FA at 7949F and is on day T+2
#) we see a composite POC at 7984 in the profile chart posted above and the bias is lower below it.
#) Per the weekly plan we await a test of 7764 F to know if the profile can stage a bounce from there or continue down.
#) Value areas are at 7828-7808-7800– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
(based on Dec F)
K.R.A is 7894 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 7834 it could move to 7860 and 7907. SL for this view is 7788
Hypo 2) IF NF auctions below 7785 it could move to 7764 and 7742. Sl for this view is 7826
BankNifty Dec 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-07-dec-11-dec15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was a normal variation day
#) Vwap was at 17034 with volumes of 14..9 L in a session which traded a 17125-16991 range of 134 points
#) day POC was at 17040 levels slightly above the previous session
#) OrderFlow shows short-covering at the lows of the session today
#) We see 17227F as resistance on any pullback this week.
#) Value areas are at 17046-17040-17016 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 17228 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17077 it could move to 17124 and 17216. Sl for this view is 16970.
Hypo 2) If BNF auctions below 16980 it could move to 16940 and 16899. SL for this view is 17050.
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.