Today, the progression of higher value broke in a b shaped profile and the markets moved into a sideways zone ending the IPM. It’s part of the 4 step process of the market, elaborately explained by Pete Syeidlmayer. You will find some details on the steps at: http://vtrender.com/steidlmayer-distribution-4/
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-05-oct-09-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF profile was a b shaped profile where the long liquidators enjoyed a dominant role.
#) vwap of the day was at 8152 with volume of 95 L in a trade which worked an 8199-8127 range of 72 points
#) Day POC was at 8158 levels near vwap and midpoint
#) Profile went sideways today putting an end to the strong IPM off RBI day
#) The OrderFlow of today shows buyers near 8140- 8130 again but yesterday and today we have traces of reds at 8190 +
#) We still see the weekly auction getting support near 8130 and moving towards 8260.
#) Value areas are at 8162-8157-8136– 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 8130 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 8182 it could move to 8206 and 8247. SL for this view is 8140
Hypo 2) IF NF auctions below 8135 it could move to 8109 and 8078. Sl for this view is 8165
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-05-oct-09-oct15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF profile was also b shaped but remained inside the recent 3-day range
#) vwap was at 17540 with volumes of 33.5 L in a trade which worked a 17702-17470 range of 232 points.
#) day POC was at 17540
# OrderFlow showed buyers buying the dip below 17500 aggressively
#) Profile is a 3-1-3 in the making with excess at both ends. Bias remains positive above 17530 but clear supply near 17850 visible.
#) Value areas are at 17560-17540-17500for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Oct Futures)
K.R.A is 17340 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17625 it could move to 17700 and 17855. Sl for this view is 17520.
Hypo 2) If BNF auctions below 17460 it could move to 17385 and 17312. SL for this view is 17570.
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.