Market Profile Analysis dated 18th Feb

Nifty Feb F:

NF again opened with a freak OH start and this time it was at 10810 in the opening minute but immediately got back into yVAH of 10755 initiating the 80% Rule. The ‘A’ period made a low of 10692 after which NF completed the 80% Rule in the ‘B’ period as it made a low of 10680 tagging the yVAL leaving a rather bigger IB and from there gave a bounce to VWAP. (Click here to view the profile chart for better understanding) The auction then struggled to get new demand at VWAP and therefore could not sustain above it as it made a high of 10712 in the ‘C’ period and resumed its probe lower. NF broke below the IBL in the ‘D’ period making a new low at 10670 after which the ‘E’ period made a narrow range and an inside bar indicating exhaustion on the downside. The next 3 periods saw the auction probing higher making higher lows & higher highs as the ‘G’ period closed above VWAP but the ‘H’ period again stalled at that morning pull back high of 10712. This action confirmed that sellers are still in control as NF closed below VWAP in the ‘H’ period and then trended lower into the close ending with a small spike down from 10664 to 10653. NF made an inside bar for the day range wise but formed Value below Friday’s VWAP with the dPOC also shifting lower which means the PLR is still to the downside.

• The NF Open was a Open Auction in Range (OAIR)
• The day type was a Normal Variation Day (Down)
• Largest volume was traded at 10693 F
• Vwap of the session was at 10693 with volumes of 83.5 L in a session which traded a High-Low range of 10757-10653 for a range of 104 points if we ignore the freak OH tick of 10810
• NF confirmed a multi-day FA at 10946 on 12/02 and completed the 2 ATR move down of 10699. This FA is now on ‘T+5’ Days
• NF had left a FA at 10830 on 04/02 and completed the 2 ATR move up of 11073. This FA got tagged on ‘T+7’ days and is no longer support.
• NF had left a FA at 10710 on 04/01 and completed the 2 ATR move up on 15/01 and was strong support but closed below it today so no longer support.
• NF had left a FA at 10580 on 26/12 & completed the 2 ATR move up to 10862. This FA has not been tagged and is now strong support
• The Trend Day VWAP & POC of 06/02 11046 & 11035 was broken on 08/02 and the closed below them so now they are no longer support levels
• The Trend Day VWAP & POC of 31/01 is at 10793 & 10775 which was broken on 15/02 and the closed below them so now they are no longer support levels
• The VWAP & POC of Jan Series is 10795 & 10823 respectively. The auction close below this today and remains weak below it.
• The VWAP & POC of Dec Series is 10796 & 10741 respectively. The auction close below this today and remains weak below it.
• The VWAP & POC of Nov Series is 10480 & 10580 respectively.

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

Daily Zones:

• • Value zones (volume profile) are at 10671-10693-10709

Hypos / Estimates for the next session:

a) NF has immediate support at 10655 below which it can probe lower to 10640 & 10619-615
b) Staying above 10664 at open, the auction can test higher levels of 10680 & 10695-697
c) Below 10615, NF gets weak for a move to 10585 and 10568-566
d) Above 10697, the auction can probe higher to 10712-722 & 10757-766

BankNifty Feb F:

BNF made an OAIR start which was also inside previous Value inspite of the freak OL tick of 26780 in the opening minute indicating a low conviction day and ‘B’ period confirmed the same by making an inside bar. (Click here to view the profile chart for better understanding) The auction then stayed in a narrow range between the yPOC of 26824 and yVAH of 26900 till the ‘D’ period when it broke below the yPOC to make a low of 26793 but did not see any follow down in the ‘E’ period which went on to probe above ‘D’ highs starting a OTF upside till the ‘H’ period as BNF made a high of 26904 but again got rejected from yVAH. The ‘H’ period then signalled the reversal of the auction to the downside as it closed below VWAP leaving an outside bar from where BNF went on to trend lower into the close making new lows almost tagging the Friday low and left a small spike from 26760 to 26722. Both range and value for the day was inside previous day so can look for a range expansion in BNF in the next session.

• The BNF Open was a Open Auction in Range (OAIR)
• The day type was a Normal Variation Day (Down)
• Largest volume was traded at 26855 F
• Vwap of the session was at 26834 with the lowest volumes of 2019 at15.6 L in a session which traded a High-Low range of 26907-26722 for a range of 185 points
• BNF confirmed a FA at 27384 on 12/02 and tagged the 2 ATR move down at 26736 on 15/02. This FA is currently on ‘T+4’ Days
• BNF confirmed a FA at 27716 on 23/1 and completed the 2 ATR move down hence is now strong resistance
• The VWAP & POC of Jan Series 27236 & 27514 respectively. The auction has closed below both of them.
• The VWAP & POC of Dec Series 26713 & 26832 respectively. The auction broke below the VWAP almost tagging the POC and closed around it.
• The VWAP & POC of Nov Series 25686 & 26218 (Spot) respectively

For the Monthly charts & other swing levels for BankNifty & BNF click here & for the weekly charts & analysis, please click here.

Daily Zones:

• • Value zones ( volume profile) are at 26800-26855-26890

Hypos / Estimates for the next session:

a) BNF has immediate support at 26720 below which it can probe lower to 26685 and 26643-636
b) On the upside, BNF needs to sustain above 26760-771 for a move to 26836-855 and 26890
c) Below 26635, the auction gets weaker for a test of 26593-550 and 26510-500
d) BNF has major resistance now at 26930 which if broken can move higher to 26990-27006 and 27060

For more tradeable ideas and intraday trading strategies based on MarketProfile and the OrderFlow live charts with OrderFlow analysis Live, subscribe to the trading room. The Vtrender Trading Room hosts India’s largest MarketProfile community live every trading session from 9.15 am to 3.30 pm.

If not a Trading Room member you can get immediate access at – https://in.explara.com/e/vtrender–trading–room/checkout