The NF opened in the spike , held spike lows and was unstoppable above spike highs of 7620 as the day trended higher to reach 7752. At the close the bounce was 195 points but we remain unconvinced . Even though the lows had buyers , there was long liquidation even shorts entering on the rise and a trip back to 7644 and 7600 is our preferred play tomorrow.
Nifty Sept 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-sept-11-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The NF was a trend day which held spike lows and auctoned higher into the close
#) vwap of the day was at 7644 again with volume of 174.3 L in a trade which worked a 7752-7558 range of 195 points
#) Day POC was at 7600 levels down from the 7660 we saw the day before
#) auction of today had anomalies at 7695 and 7656 and 7623 which again confirms the message from the orderflow of poor structure in the rise up.
#) The OrderFlow shows sellers above 7665 stepping in to sell at the higher prices
#) we auctioned below the FA point of 7961 on 01/09 changing the bias for the short term.
#) Gap between profiles is 7944- 7961.
#) Larger Auction shows 7643 (broken but weekly leans on 7520 F) as weekly support and we believe dips to this point will be used to build positions for 7950 again. SL for this view to play out is 7510 during the week.
#) Value areas are at 7734-7610-7608– 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 Sept F)
K.R.A is 7600 ( K.R.A= key reference area)
Hypo 1) If NF auctions above 7752 then it could move to 7800. Sl for this view 7722
Hypo 2) If NF auctions below 7722 it could move to 7670 and 7601 . Sl for this view is 7765
BankNifty Sept 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-31aug-04-sept15/
Observations in Today’s/ Previous sessions :
(based on Fut prices)
#) The BNF profile was also a trend day which moved higher into the close
#) vwap was at 16170 with volumes of 52.1 L in a trade which worked a 16490-15833 range of 657 points.
#) day POC was at 16403 today in the upper 1/4 of the range
#)OrderFlow shows selling into the close
#) Gap between profiles is 17025- 17090.
#) Value areas are at 16448-16400-16032 for bias. . For using value areas effectively visit : http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Sept Futures)
K.R.A is 16200 ( K.R.A= key reference area)
Hypo 1) If BNF auctions above 16490 then it could move to 16582 and 16640 .Sl for this view is 16390
Hypo 2) If BNF auctions below 16285 then it could attempt to move to 16200 and 15973 . Sl for this view is 16385
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.
We take a few more trades based on the emerging Orderflow and the role of the Big players from our live charts. Visit the Trading Room Section for more.