Market Profile Analysis dated 08th December 2023

Nifty Dec F: 21075 [ 21106 / 20949 ]

NF made an Open Auction start sustaining above the composite POC of 21031 as it made a low of 21035 and probed higher scaling above the reference of 21075 to hit new highs of the series at 21104 in the B period after which it made the dreaded C side extension to 21106 and failed to get fresh demand forcing even the morning buyers to book profits as the dPOC shifted higher to 21100.

The auction then made a decisive break below day’s VWAP in the D period triggering a quick liquidation break as it almost completed the 80% Rule in the 2-day Value while hitting new lows for the day at 21001 and along with it confirming a FA (Failed Auction) at the top. The defence of VAL then resulted in a bounce back to the SOC (Scene Of Crime) of 21072 but left similar highs at 21075 & 21074 in the E & F TPOs suggesting that the FA was still in play.

NF then got back again into the 2-day Value once again in the G period and this time went on to break below the VAL of 20999 making a fresh RE (Range Extension) in the H TPO and followed it up with a lower low of 20950 in the I as it completed the 1 ATR objective of 20975 from the FA of 21106 but held the small buying tail of the composite leaving similar lows of 20949 in the J indicating downside getting limited.

The K period then gave more confirmation of the auction changing direction as it stopped the sequence of leaving lower highs since D and got back near day’s VWAP which was taken out in the L TPO triggering a quick move higher to 21095 into the close leaving a Neutral Centre Day with overlapping to higher Value with a FA at 21106 and a SOC (Scene Of Crime) at 20977 and one of these 2 levels will need to be taken out in the coming session(s) for a further move in that direction.

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Business Areas for 11th Dec 2023

BankNifty Nov F: 47500 [ 47599 / 46961 ]

BNF made an OAIR start but gave a move away from the 2-day balance with an A period buying tail from 46991 to 47133 as it scaled above the initiative selling mid-point of 47216 from 06th Dec while making a high of 47265 in the B TPO after which it made the dreaded C side extension to 47312 and was swiftly rejected.

The auction made the customary test of day’s VWAP in the D period and even broke below it triggering a swipe down to 47043 where it got some demand coming back defending the 2-day VAH of 47063 and made a probe back to IBH in the E TPO but could only manage to tag 47272 indicating that the C side supply was defending this zone as it not only made lower lows in the F & G periods but made a RE (Range Extension) to the downside in the H making new lows for the day at 46961.

BNF however left a responsive buying tail in the H period and went on to test day’s VWAP in the I TPO where it left a PBH at 47169 indicating that the sellers were still in control who pushed it back down to 47045 but left similar low of 47044 in the J which also saw the dPOC shift lower to 47087 clearly meaning that the shorts were booking profits.g tail of the composite leaving similar lows of 20949 in the J indicating downside getting limited.

The all important K period then scaled above day’s VWAP and the PBH of 47169 triggering a big squeeze in the L TPO confirming a FA at lows and went onto gain momentum as it not only completed the 1 ATR objective of 47437 but went on to record new ATH of 47599 into the close leaving an ideal Neutral Extreme (NeuX) profile with the NeuX zone low of 47492 & the extension handle of 47311 being the important levels to watch on the downside for the rest of the series along with today’s VWAP of 47171 as the auction looks to make more headway on the upside in this unchartered teritory.

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Business Areas for 11th Dec 2023

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