Market Profile Analysis dated 04th January 2021

Nifty Jan F:  14165 [ 14179 / 13970 ]

NF opened higher but settled down into an OAOR as the auction began to coil staying in a 24 point range in the ‘B’ period & then in just a 13 point range in the ‘C’ period which meant all the demand had been dried up and that there was no buyer left which empowered the sellers to strike in the ‘D’ period as NF made a RE to the downside and not only got back into previous day’s range but went on to almost complete the 80% Rule in the well balanced weekly Value Area of 14054 to 13958 as it made a low of 13970 giving a 155 point drop in a single TPO. However, this express fall saw aggressive demand coming back as the auction left a buying tail from 14023 to 13970 in the ‘D’ period and got back above VWAP in the ‘E’ period initiating a OTF (One Time Frame) probe to the upside as it made higher highs from the ‘G’ to the ‘M’ periods as it made highs of 14179 leaving a Neutral Extreme profile with Value completely higher for the day. The Neutral Extreme zone on watch for the next open would be from 14156 to 14179 and the PBL/VWAP combo of 14102/14097 will be the important reference for the rest of the week.

Click here to view the latest profile in NF on MPLite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Extreme Day – Up (NeuX)
  • Largest volume was traded at 14133 F
  • Vwap of the session was at 14097 with volumes of 101 L and range of 209 points as it made a High-Low of 14179-13970
  • The settlement day Roll Over point (Jan) is 14007
  • The VWAP & POC of Dec Series is 13528 & 13528 respectively.
  • The VWAP & POC of Nov Series is 12554 & 12862 respectively.
  • The VWAP & POC of Oct Series is 11793 & 11897 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 14087-14133-14158

HVNs – 13970 / 14051


BankNifty Jan F:  31326 [ 31599 / 30931 ]

BNF also opened higher and got accepted in the selling tail of 31458 to 31607 which was a bullish sign but the inability to scale above previous week’s high even after the ‘C ‘period meant that the supply was overcoming all the demand and similar to NF, the auction made a huge RE lower in the ‘D’ period where it left an extension handle at 31430 and not only breezed past the 4-day composite but went on to tag the VPOC of 30975 from 28th Dec as it made a low of 30931 taking support just above the PBL of 30897 leaving a big 574 range in the ‘D’ period. BNF then made a retracement over the next 5 periods as it scaled above VWAP but could not tag the extension handle of 31430 and left a PBH at 31381 in the ‘I’ period which indicated that the sellers were still active in this zone. The auction then probed lower breaking below VWAP as it tested the D period buying tail of 31120 to 30931 and was swiftly rejected after leaving a PBL at 31103 which meant that the morning buyers were still defending their positions and this led to another rotation to the upside as BNF tagged 31381 in the M period before closing the day at 31326. Value for the day was overlapping on both sides thanks to the outside bar which means we now have a 5-day composite with Value at 31223-31327-31419 and a move away from here is imminent in the coming session(s) with the extension handle of 31430 as the reference on the upside & the singles of 31103 to 30931 the zone to watch on the dowside.

Click here to view the 5-day composite in BNF on MPLite

  • The BNF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Variation Day – Down (Outside Bar)
  • Largest volume was traded at 31285 F
  • Vwap of the session was at 31292 with volumes of 53.6 L and range of 668 points as it made a High-Low of 31599-30931
  • The settlement day Roll Over point (Jan) is 31389
  • The VWAP & POC of Dec Series is 30270 & 30766 respectively.
  • The VWAP & POC of Nov Series is 28104 & 29565 respectively.
  • The VWAP & POC of Oct Series is 23740 & 24468 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 31109-31285-31380

HVNs – 31410

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