Nifty Future – ProAMT Analysis – Technical Levels – 25-06-2015
Nifty Future opened just below PDH & below the VAH of with a OAIR open type. The level of 8259 & 8268 was where we wanted it to stay above as per our Hypothesis of 23-06-2015 & as the Hypothesis stayed the same for 24-06-2015 we had not updated the post for 24-06. The auction managed to stay above those levels & swiftly moved up above PDH. Please refer to the following post for most commonly used Market Profile Terminology.
Lets have a look at the Daily Market Profile and the Order Flow chart below to see how the auction developed.
Nifty Future – ProAMT Order Flow Chart – 25-06-2015
As we can see huge sell order near 8412 & 8416 & relatively stronger negative order flow at the highs of the day. The auction was hovering above the psychological level of 8400 for a better part of the day until Europe open but the aggressive seller at the highs managed to auction down below yesterday’s value with a last hour spike & gave a weak close below DVAL . We were assuming long liquidation on 22-06 even though the trend day pointed to short covering as what is important for us is short covering happen’s most of the times when we start accepting the prices above the larger balance & not withing the previous known larger balance. We still have some unfinished business left at the highs of the day though.
The Week Composite Market Profile Charts for Nifty Spot & Bank Nifty Spot can be found HERE.
The VWAP for the day stood at 8383, even higher than the VWAP of yesterday. Weekly VWAP which was at at 8134 has moved to 8189 will be a level to watch for the day as well as the week.
Nifty Future – Market Profile TPO Chart – 25-06-2015
We have a Neutral Extreme day with anomaly of 22-06-15 at 8327 getting repaired to an extent & 8274 still left to be repaired, whereas we have anomaly again at 8367 in today’s profile. The value area has developed higher than previous days value area may have a revisit there for a balance.
Nifty Future – ProAMT Analysis – Technical Levels – 25-06-2015
Hypothesis 1 : Nifty Future staying above 8376 will try to probe upwards towards 8394 initially if manages to stay above 8394 then will probe towards the Selling tail high of 02-06
Hypothesis 2 : Nifty Future staying below 8316 may weaken towards 8301 & 8274 below which supply may accelerate if no buying interest is found.
Being the Expiry day of June 2015 Derivatives Contract, we expect a 2 way move so would bet more towards two way trade within the Demand & Supply Zones & expect an expiry around 8327 +/- 25 points. The open & initial auction will give more cues towards the expiry & in extreme case may expire above 8405 so better not to anticipate much & trade according to how the day develops.
Have a profitable trading day !!
Note : When we refer to Demand or Supply zone ; we mean to refer to the prior established balances established either on intraday time frame or on a daily time frame. The essence of Market Profile is to watch out for Micro Composites & Auction acceptance & rejection in those balances. Its not a definite rule to watch for a Daily, Weekly or a Monthly Profile as market is dynamic & the auction may be doing some important activity during the day which cannot be seen on a Daily Profile. The intention of posting these charts is to have a general overview for everyone & if we give the precise levels of the micro composites & update that in real time it will be as good as trading for everyone.
Disclaimer :
The above charts & write-up are for educational & reference purpose only. Trading in derivatives has high risk involved and the above levels are not a recommendation/offer to buy or sell any or all of the above derivatives. Any person trading or making buying or selling decisions on the basis of the above mentioned levels should do so at their own risk. Justfintech.com/its affiliates/staff will not be responsible for any profits and/or losses arising from the trades executed on the basis of the above levels. It is advisable to consult your personal financial adviser/consultant before entering into a trade. The usage of the charts is subject to terms of use of this site and is not a recommendation of any sort but is just for information purpose only. Market Profile & Market Profile graphic are the registered trademark of their trademark owners & we duly acknowledge the same. justfintech.com being the official website of Justfintech Investment Solutions LLP, Mumbai, we hereby acknowledge that none of the Directors, Designated Partners, Authors or Staff are Registered with SEBI or any other Regulatory Authority as Research Analysts or Investment Advisers. As SEBI has clarified that comments or report on General Market Trend, Broad-based Indices, Economic, political or market conditions, Technical Analysis on Demand and Supply levels do not fall under the scope of the SEBI’s Research Analysts Regulations 2014 hence we will be posting articles/posts/charts in accordance with those rules w.e.f 01-12-2014.
