Market Profile Analysis dated 27th September 2023

Nifty Sep F: 19719 [ 19743 / 19543 ]

NF opened lower and stayed below PDL hinting at a move away from balance as it made a low of 19592 in the A period and went on to double the range in the B where it left a selling extension handle and made new lows of 19543 hitting the 04th Sep’s SOC of 19544 and forming a relatively large IB range of 99 points.

The C side then made an inside bar forming poor lows signalling exhaustion to the downside and more confirmation came in the form of the dPOC shifting down to 19555 after which the auction not only got above VWAP in the D TPO but negated the extension handle of 19592 indicating that the PLR (Path of Least Resistance) had changed to the upside.

The 80% Rule got triggered in the E period as NF got into the Value of the 2-day Gaussian Curve and followed it up with multiple REs (Range Extension) tagging the VAH of 19704 in the I TPO and even got above important level of 19722 in the K & L periods where it made a high of 19743 completing the 2 IB objective of the day but left a small selling tail at top showing that supply was coming back in this zone resulting in profit booking by the buyers which caused the dPOC to shift higher to 19701

The daily profile is an elongated Double Distribution type with couple of SOCs at 19570 & 19642 and the move back into previous Value means that we now have a 3-day composite with an ultra prominent POC at 19683 & the updated Value at 19643-19683-19715 which will be the immediate zone to watch on the downside as we have closed just above it whereas on the upside, NF will need to negate the selling zone from 19740 to 19760 for a move back to the earlier 2-day VAH of 19824 in the next session. (Click here to view the composite profile only on Vtrender Charts)

Click here to view the latest profile in NF on Vtrender Charts

Business Areas for 28th Sep 2023

BankNifty Sep F: 44605 [ 44730 / 44149 ]

BNF opened lower negating previous session’s buying tail and even went on to re-visit 25th Sep’s FA of 44469 while making a low of 44460 in the A period and saw fresh aggressive selling coming in at the start of B in form of an extension handle causing a drop of 280 points as it negated 01st Sep’s buying handle of 44340 & broke below the SOC of 44225 while making a low of 44182 forming a large 395 point range IB (Initial Balance).

The auction then made a typical C side extension to 44149 which was swiftly rejected giving the expected bounce back to day’s VWAP but what came as a surprise was the D TPO leaving a SOC at 44289 to climb into the B period singles which was followed by the negation of the morning extension handle of 44460 in the E signalling change of character.

BNF remained above day’s VWAP thereafter and even made a big RE to the upside in the I period confirming a FA (Failed Auction) at lows and completed the 80% Rule in previous Value to the dot tagging 44730 in the J TPO but could not sustain triggering the reverse 80% Rule which it completed in the same TPO and went on to leave a PBL at 44525 in the K before closing the day just above IBH.

We have a Neutral Extreme profile though not an ideal one as it has left similar mini tails at both the ends with couple of SOCs at 44289 & 44515 which will be the levels to watch on the downside along with today’s VWAP of 44465 which was defended all day post the C period whereas on the upside, the auction would need buyers to show up above the L & J TPO RS (Responsive Selling) levels of 44624 & 44705 respectively for a probe higher to the 3-day composite POC of 44801 and 25th Sep’s VPOC of 44957 in the coming session.

Click here to view the latest profile in BNF on Vtrender Charts

Business Areas for 28th Sep 2023

You can check the monthly charts & other swing levels for both Nifty & BankNifty here & for the weekly charts & analysis, please click here.