Market Profile Analysis dated 25th September 2023

Nifty Sep F: 19700 [ 19763 / 19626 ]

NF made an OH (Open=High) start at 19722 and probed lower making a look down below previous lows confirming the multi-day FA at 19825 and went on to test 07th Sep’s PBL of 19647 while hitting 19645 in the B period after which it made a typical C side extension to 19639 which was swiftly rejected giving a bounce back to day’s VWAP at 19679.

The auction made similar highs of 19679 in the D TPO also as could not get any fresh demand at VWAP triggering another move to the downside and even making a fresh RE in the E period making marginal new lows of 19635 but saw big buying coming in as the dPOC shifted lower to 19649 and more confirmation came in the F where it scaled above VWAP and followed it up with a big RE to the upside in the G TPO confirming a FA at lows.

The H period saw new highs for the day at 19763 being tagged which was just short of 22nd Sep’s SOC (Scene Of Crime) which was at 19765 plus the 1 ATR objective of today’s FA which came to 19766 forcing the buyers to liquidate resulting in a reversal of the probe to the downside as the J period swiped through the day’s Value and K went on hit new lows for the day at 19626 but once again was met with good responsive buying as NF not only got back above VWAP but went on to make a look up above IBH hitting 19728 but could not take out today’s SOC of 19732 and closed in the middle of the profile.

We have a Neutral Day today with mostly lower Value with the level of 19690 once again being the reference for the next open along with 19728-19765 being the zone to watch on the upside along with the FA of 19824 whereas on the downside, the mini responsive buying tail from 19635 to 19626 will need to be negated by initiative selling activity for that pending probe to 19561.

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Business Areas for 26th Sep 2023

BankNifty Sep F: 44812 [ 44991 / 44469 ]

BNF made an OA (Open Auction) start on less than average volumes as it could not sustain above 44695 and completed the 80% Rule in the 4-day composite (04th-07th Sep 2023) while making a low of 44562 in the A period and continued the downmove in the B where it hit 44491 but could not find fresh supply.

The C TPO was a rare narrow range inside bar confirming exhaustion to the downside after which the auction made an attempy to extend lower in the D but could only manage to tag 44469 taking support exactly at that composite’s buying tail from 44470 to the freak tick of 44160 and formed another narrow range inside bar in the E.

The F period reversed the PLR (Path of Least Resistance) to the upside by leaving a SOC (Scene Of Crime) at 44580 and getting back into the 2-day Value and followed it up with a big RE in the G period as it left an extension handle at 44740 and not only confirmed a FA at lows but also completed the 1 ATR objective of 44918 while making a high of 44937 and continued forming higher highs in the H & I TPOs where it hit 44991 completing the 2 IB target of 44989 to the dot which saw big profit booking by the buyers as the dPOC shifted higher to 44957 marking the end of the upside for the day.

BNF then made a large retracement down to 44595 in the K period taking support just above the SOC of 44580 triggering a short covering bounce back to 44896 in the L before settling down to close around the HVN of 44802 leaving a Neutral Extreme Day Up with completely overlapping Value and a FA at lows.

The 3-day composite in BNF is now a smoother ‘b’ shape profile with Value at 44662-44801-45020 and an extension handle at 45118 which continues to be the upside reference along with the initiative selling tail from 45300 to 45395 where as on the downside, today’s SOC of 44580 along with the FA of 44469 will be the important levels to hold below which 01st Sep’s Extension Handle of 44340 could come into play. (Click here to view the composite profile only on Vtrender Charts)

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Business Areas for 26th Sep 2023

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