Market Profile Analysis dated 05th August 2020

Nifty Aug F:  11118 [ 11226 / 11063 ]

HVNs – 10918 / 10970 / 11095 / 11169 / 11263

NF not only opened higher but continued to drive up in the Initial Balance (IB) as it made highs of 11220 and left a long buying tail from 11193 to 11129. The auction then made that dreaded C side extension as it made new highs of 11226 but was swiftly rejected back into the IB after which it made a micro balance till the ‘D’ period taking support at the combo of VWAP and the buying tail. The ‘E’ period then broke below VWAP and as often happens, break of a drive triggered a huge liquidation move lower of almost 150 points as NF made an RE (Range Extension) lower in the ‘E’ period confirming a FA at top and even tagged the 1 ATR objective of 11066 as it made a low of 11063. The auction formed a balance below VWAP for the rest of the day as it got rejected twice leaving PBHs at 11160 & 11140 before closing around the dPOC of 11125 leaving a Neutral Day.

Click here to view the MP Lite chart of the latest profile of NF

  • The NF Open was a Open Auction Out of Range plus Drive (OAOR + D)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 11125 F
  • Vwap of the session was at 11138 with volumes of 142.1 L and range of 163 points as it made a High-Low of 11226-11063
  • NF confirmed a FA at 11226 on 05/08 and tagged the 1 ATR objective of 11066 on same day. The 2 ATR objective comes to 10906
  • The settlement day Roll Over point (Aug) is 11095
  • The VWAP & POC of Jul Series is 10897 & 10803 respectively.
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 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 11085-11125-11176

Main Hypos for 06.08.2020:

a) NF needs to sustain above 11125 for a rise to 11153 / 11186-198 / 11226 & 11245-278
b) The auction staying below 11103 could fall to 11075-040 / 11022-004 / 10972 & 10945

Extended Hypos:
c) Above 11278, NF can probe higher to 11306-334 / 11350-385 & 11400-442
d) If 10945 is taken out, NF could fall to 10921 / 10883-850 & 10806-800


BankNifty Aug F:  21559 [ 22000 / 21464 ]

HVNs – 21545 / 21615 / 22151

Click here to view the MP Lite chart of the latest profile of BNF

BNF also opened with a gap up plus a drive as it made a good IB range of 327 points while making a high of 21986 and had left a long buying tail from 21856 to 21657. The auction then remained silent in the ‘C’ period as it made a narrow range inside bar and pushed what it normally does in the ‘C’ period to the ‘D’ period as it made a failed RE attempt higher hitting marginal new high od 22000 but was swiftly rejected which set up a big break in the ‘E’ period as BNF not only broke below VWAP but went on to make a RE on the downside in the ‘F’ period as it confirmed a FA at to and almost tagged the 1 ATR objective of 21440 as it made lows of 21464 stopping just below previus day’s POC of 21460. This defence of the yPOC meant that the downside for the day was limited and the auction formed a balance for the rest of the day similar to NF leaving PBHs at 21748 & 21671 before closing around the day’s HVN of 21560 leaving a Neutral profile.

  • The BNF Open was a Open Auction Out of Range plus Drive (OAOR + D)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 21560 F
  • Vwap of the session was at 21710 with volumes of 80 L and range of 536 points as it made a High-Low of 22000-21464
  • BNF confirmed a FA at 22000 on 05/08 and almost tagged the 1 ATR objective of 21440 on same day. The 2 ATR objective comes to 20880
  • The settlement day Roll Over point (Aug) is 21615
  • The VWAP & POC of Jul Series is 22163 & 22087 respectively.
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 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 21520-21560-21820

Main Hypos for 06.08.2020:

a) BNF needs to sustain above 21610 for a rise to 21675-754 / 21865 / 21940-991 & 22068-151
b) The auction accepting below 21530 could test 21445-361 / 21309-245 / 21190-039 & 20970

Extended Hypos:

c) Above 22151, BNF can probe higher to 22200-290 / 22336-393 / 22458-550 & 22600-710
d) Breaking below 20970, it could fall to 20904-850 / 20750-690 / 20589-480 & 20391

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