Market Profile Analysis dated 05th June 2020

Nifty Jun F:  10145 [ 10184 / 10040 ]

HVNs – 9093 / 9275 / 9433 / 9785 / 9868 / 10020 / 10100

Previous day’s report ended with this ‘The auction once again formed a prominent POC at 10020 & closed around it so would be interesting to see if it gives a move away from this POC or starts to form a balance around it in the next session

NF opened above the yPOC (yesterday’s POC) of 10020 giving a positive bias at open in spite of the OAIR start on the lowest 15 minute volumes of the series as it probed above PDH (Previous Day High) in the ‘A’ period but could not find new demand which then led to a complete retracement since open and triggered a ‘C’ side RE (Range Extension) lower as the auction made new lows for the day at 10040 but could not extend lower extend further in the ‘D’ period as it made a similar low of 10041. The yPOC of 10020 still holding along with poor lows meant that demand was coming back in this gap zone as NF got back into the IB (Initial Balance) in the ‘D’ period and stayed above it getting to VWAP where it got stalled for 3 consecutive periods from ‘F’ to ‘H’ but left a PBL (Pull Back Low) at 10071 in the ‘G’ period indicating that the supply was getting absorbed. The ‘I’ period then started a fresh move to the upside making multiple REs over the next 3 periods which also confirmed a FA at lows thus adding more conviction that the buyers were taking control as the auction almost tagged the 1.5 IB objective in the ‘K’ period getting into the selling tail of 3rd June and was met with supply which triggered a retracement to VWAP in the ‘L’ period where it left a PBL at 10110 before spiking into the close to make new highs for the day at 10184 leaving a Neutral Extreme profile. NF has now formed a nice 3-day composite with Value at 10032-10094-10158 (check the MP Lite chart of the composite here) and needs to get accepted above this for a new leg on the upside.

  • The NF Open was a Open Auction In Range  (OAIR)
  • The day type was a Neutral Extreme Day – Up (NeuX)
  • Largest volume was traded at 10100 F
  • Vwap of the session was at 10108 with volumes of 154.9 L and range of 144 points as it made a High-Low of 10184-10040
  • NF confirmed a FA at 10040 on 05/06 and the 1 ATR objective comes to 10241.
  • The Trend Day VWAP of 9165 would be important support level.
  • The settlement day Roll Over point (Jun) is 9426
  • The VWAP & POC of May Series is 9183 & 9109 respectively.
  • The VWAP & POC of Apr Series is 8999 & 9010 respectively.
  • The VWAP & POC of Mar Series is 9146 & 8592 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 10086-10100-10152

Main Hypos for the next session:

a) NF needs to take out supply at 10180 for a rise to 10212-240 / 10266-297 / 10335-347 / 10375 & 10401-410
b) Staying below 10140, the auction could test 10108-093 / 10060-032 / 9980-9950 & 9932-00

Extended Hypos:
c) Above 10410, NF can probe higher to 10440-455 / 10506 / 10544*-560 & 10595-615
d) Below 9900, the auction can fall further to 9868*-9840 / 9810-9785 / 9756-15 & 9690


BankNifty Jun F:  21016 [ 21192 / 20388 ]

HVNs – 17800 / 19000 / 19186 / 19980 / 20380 / 20750 / (20940) / 21000

Previous day’s report ended with this ‘Value for the day was completely lower so staying below 20380, there is good chance that BNF could probe lower towards the extension handle of 20155 & the HVN of 19980 in the coming session.

BNF opened higher with a OH(Open=High) start at 20430 and started to fill up the low volume zone of previous day’s DD profile as it tagged 20817 in the IB but similar to NF, the auction made a ‘C’ side RE lower and followed it up with another mariginal RE in the ‘D’ period where it made a low of 20388 but could not break below that 20380 reference which was an important sign. BNF then reversed the probe to the upside making a trending move higher for the rest of the day as it not got back into the IB and scaled above VWAP but went on to make a RE higher in the ‘I’ period which confirmed a FA at lows and though the ‘J’ period gave a pull back to VWAP at 20640, the PLR had turned firmly to the upside as the auction spiked higher into the close completing the 1 ATR objective of 21148 from 20388 while making a high of 21192 leaving a Neutral Extreme profile in this index also. BNF has also formed overlapping Value in the last 3 sessions and the composite gives a balance at 20478-20761-21102 (click here to view the MP Lite chart) which means that the auction will need to stay above 21102 and negate the selling tail of 3rd June from 21399 t0 21611 for a probable move to the 2 ATR objective of 21907 from today’s FA in the coming session(s).

  • The BNF Open was a Open Auction In Range  (OAIR)
  • The day type was a Neutral Extreme Day – Up (NeuX)
  • Largest volume was traded at 20750 F
  • Vwap of the session was at 20712 with volumes of 86.7 L and range of 804 points as it made a High-Low of 21192-20388
  • BNF confirmed a FA at 20388 on 05/06 and completed the 1 ATR objective of 21148 on same day. The 2 ATR target from this FA comes to 21907.
  • The Trend Day VWAP of 18138 would be important support level.
  • The settlement day Roll Over point (Jun) is 19035
  • The VWAP & POC of May Series is 18767 & 19633 respectively.
  • The VWAP & POC of Apr Series is 19605 & 19710 respectively.
  • The VWAP & POC of Mar Series is 22104 & 20248 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 20470-20750-20825

Main Hypos for the next session:

a) BNF needs to sustain above 21125 for a rise to 21180-300 / 21399 / 21525-608 / 21690 / 21764-785 & 21888-932
b) Staying below 21000, the auction could test 20880-826 / 20760-700 / 20616-568 / 20479-384 / 20310-250 & 20186

Extended Hypos:
c) Above 21932, BNF can probe higher to 22000-110 / 22200 / 22350-448 / 22520 / 22650 & 22720-780
d) Below 20186, lower levels of 20130-088 / 20022-19960 / 19877-820 / 19764-650 / 19575-500 & 19349-295 could come into play

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