A part of our VMR (Vtrender Mentoting Room) discussions yesterday -
Opening Sentiment and Early Market Action
The day opened with observations about the market holding near VWAP but not breaking above. Bank Nifty put volumes surpassed calls for the first time in days, suggesting a shift in sentiment. Nifty spot was near a strong yearly resistance at 24,336. Bank Nifty futures (BNF) showed signs of probing lower zones from the previous day, suggesting fast-paced movements, prompting caution and advice to reduce position size
Trade Setups and Market Structure
A potential trade idea was discussed involving a 55500 PE buy above 330 with a stop-loss at 220. The market structure was analysed in terms of value area entry, with participants debating whether it qualified as an open drive or open rejection reverse (ORR). BNF appeared more structured compared to Nifty Futures (NF), with expectations for BNF to test 55250 and 55000 levels. Simultaneously, BNF was showing clear ORR behaviour on the charts
Levels and Triggers
Nifty and BNF were targeting 24175, with spot levels hovering around 24200. Attention was drawn to the 24400 PE level with the view that crossing VWAP above it could provide more upside. A PE got triggered by a 0.9-point move and was exited at 295, surprising some traders with the volatility and questioning what was driving the market that day
Geopolitical Influence and Market Psychology
Concerns about geopolitical tension were raised, specifically regarding potential Indian actions in Kashmir. Traders suggested reducing exposure due to the uncertainty. There was also discussion of profit booking being at odds with the ongoing bullish sentiment in the US markets. These conflicting signals created confusion and cautious behaviour