Market Profile Analysis dated 04th November 2020

Nifty Nov F:  11923 [ 11945 / 11744 ]

NF gave an OTD (Open Test Drive) Up all be it on lower volumes as it moved away from the prominent POC of 11819 and made new highs of the week at 11920 just as the ‘A’ period was completed and could not extend further which led to a revisit of that 11819 in the ‘C’ period as the auction left a PBL (Pull Back Low) at 11817 and remained in the upper part of the large IB (Initial Balance) range of 149 points till the ‘G’ period forming a ‘p’ shape profile as it left similar highs of 11911 indicating exhaustion on the upside. The ‘H’ period then saw a big liquidation move happening to remove the weak longs as it not only broke below the morning PBL of 11817 but went on to make a RE (Range Extension) lower in the ‘I’ period as NF made lows of 11744 but was swiftly rejected back into the IB signalling that the previous day’s buying tail still has active demand which was further confirmed as it left a buying tail from 11771 to 11744. This return of demand triggered a trending move higher into the close as the auction not only retraced the entire fall from 11911 but went on to make a RE on the upside which confirmed a FA at lows resulting in new highs of 11945 being tagged before closing the day at 11923 leaving a Neutral Day. Value once again was completely higher for the day which means the PLR (Path of Least Resistance) remains on the upside with 11911 & 11875 being the references to watch for in the next session.

Click here to view the 2-day composite in NF on MPLite

  • The NF Open was a Open Test Drive – Up (OTD)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 11865 F
  • Vwap of the session was at 11863 with volumes of 160 L and range of 201 points as it made a High-Low of 11945-11744
  • NF confirmed a FA at 11744 on 04/11 and tagged the 1 ATR objective of 11916 on the same day. The 2 ATR target on upside comes to 12089.
  • The settlement day Roll Over point (Nov) is 11665
  • The VWAP & POC of Oct Series is 11793 & 11897 respectively.
  • The VWAP & POC of Sep Series is 11353 & 11560 respectively.
  • The VWAP & POC of Aug Series is 11311 & 11311 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 11843-11865-11923

HVNs – 11740 / 11819

Hypos for 05.11.2020:

a) NF needs to sustain above 11936 for a rise to 11968 / 12001-030 & 12089-121
b) The auction staying below 11910 could test 11881-848 / 11818-800 & 11764-725


BankNifty Nov F:  25795 [ 25914 / 25092 ]

BNF made new highs for the week at 25788 at open but could not sustain above PDH confriming an end to the imbalance of the last 3 days as it left a small selling tail at top in the IB as it got rejected once again from just above the PBH in the ‘B’ period which implied that the PLR for the day was to the downside. The auction then made a C side extension lower and as happens most of the time, it gave a retracement back to the day’s VWAP resulting in a PBH at 25574 in the ‘E’ period and this rejection of VWAP re-confrimed the downside bias for the day as BNF proceeded to make a fresh RE lower in the ‘H’ period and followed it up with a lower low of 25092 in the ‘I’ period as it tested the previous day’s buying tail and found aggressive demand coming back. This rejection at lows gave a big trending move higher for the next 3 periods as the auction took out the morning singles at top and made a RE resulting in new highs for the week at 25914 before settling down to close the day at 25795. Value for the day was overlapping on both sides giving a nice 2-day balance with composite Value at 25321-25466-25653 so as long as BNF stays above this Value, it could continue to probe higher in the coming session.

Click here to view BNF form a 2-day balance on MPLite

  • The BNF Open was a Open Auction (OA)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 25480 F
  • Vwap of the session was at 25520 with volumes of 89.7 L and range of 822 points as it made a High-Low of 25914-25092
  • BNF confirmed a FA at 24277 on 30/10 and tagged the 1 ATR objective of 23619 on the same day. This FA not only was negated on 02/11 but the auction went on to tag 2 ATR target on upside which was at 25593 on 03/11.
  • The settlement day Roll Over point (Nov) is 24110
  • The VWAP & POC of Oct Series is 23740 & 24468 respectively.
  • The VWAP & POC of Sep Series is 22320 & 22320 respectively.
  • The VWAP & POC of Aug Series is 22444 & 21595 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 25360-25480-25744

HVNs – 24110 / 25455

Hypos for 05.11.2020:

a) BNF needs to sustain above 25810 for a rise to 25935 / 26025-130 / 26250-355 / 26490-600 & 26700-820
b) The auction staying below 25750 could test 25660-590 / 25450-320 / 25150-070 / 24960-890 & 24777

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