Market Profile Analysis dated 06th August 2020

Nifty Aug F:  11199 [ 11277 / 11120 ]

HVNs – 10918 / 10970 / 11095 / 11169 / 11263

NF gave a move away from yPOC of 11125 at open as it left a buying tail in the IB (Initial Balance) from 11157 to 11120 to set up a C side extension where it made new highs of 11197 and as happens mostl of the times, the C side gave a retracement to VWAP in the ‘D’ period which was defended indicating demand coming back after which it made a fresh RE (Range Extension) higher in the ‘f’ period but got stalled just below previous day’s FA of 11226 which was also the 2 IB objective of the day. The auction made another retracement to VWAP from the new high of 11217 and this time broke below if effectively running deep into the morning buying tail while making a low of 11144 all in the ‘F’ period but was rejected as it left a PBL (Pull Back Low) there and went on to make a bigger move on the upside over the next 2 periods revisting that FA of 11226 and making new highs for the series at 11277. Having hit the 3 IB target as early as the ‘H’ period, NF then started a huge liquidation move after the ‘I’ period made an inside bar but closed around the lows of 11226 and once the ‘J’ period got back into previous day’s range, it began sliding faster to break below VWAP & the PBL of 11144 and stopped right at the yPOC of 11125 indicating support form where it bounced back to close the day at 11199. Value for the day was overlapping to higher with HVNs at 11166 & 11196 which would be the immediate references for the next open.

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

  • The NF Open was a Open Auction In Range (OAIR)
  • The Day type was a Normal Variation Day – Up(NV)
  • Largest volume was traded at 11166 F
  • Vwap of the session was at 11194 with volumes of 140.8 L and range of 157 points as it made a High-Low of 11277-11120
  • NF confirmed a FA at 11226 on 05/08 and tagged the 1 ATR objective of 11066 on same day. This FA got revisited in ‘T+1’ Day and is no longer a valid reference.
  • 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 11147-11166-11222

Main Hypos for 07.08.2020:

a) NF needs to sustain above 11196 for a rise to 11220 / 11244-275 & 11306-334
b) The auction staying below 11187 could fall to 11160-130 / 11103-094 & 11075-040

Extended Hypos:
c) Above 11334, NF can probe higher to 11385-400 / 11442 & 11465
d) If 11040 is taken out, NF could fall to 11022-004 / 10972-945 & 10921


BankNifty Aug F:  21642 [ 21969 / 21370 ]

HVNs – 21545 / 21615 / 22151

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

BNF made an OAIR start with a narrow IB range of jist 154 points from 21531 to 21685 after which it made a C side extension higher which not just broke below VWAP but also led to a RE on the downside and a probe below PDL as it completed the 2 IB objective for the day while making a low of 21370 where it left a buying tail from 21447 to 21370. The auction then made a fast probe higher over the next 2 periods of 600 points making a fresh RE on the upside and stopped just below the FA of 22000 as it made a high of 21969 in the ‘I’ period almost tagging the 3 IB target. The dual forces present in market once again came to light as BNF got back into the day’s developing Value and went on to make a low of 21507 in the ‘K’ period before closing around the dPOC of 21620 leaving a second successive Neutral Centre profile and needs confirmation of one of the 2 opposiing forces to take over for a move away from this 2-day balance.

  • The BNF Open was a Open Auction In Range (OAIR)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 21620 F
  • Vwap of the session was at 21672 with volumes of 82.8 L and range of 599 points as it made a High-Low of 21969-21370
  • BNF confirmed a FA at 22000 on 05/08 and almost tagged the 1 ATR objective of 21440 on 06/08. 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 21491-21620-21750

Main Hypos for 07.08.2020:

a) BNF needs to sustain above 21685 for a rise to 21750-860 / 21939-960 / 22054-160 & 22230-290
b) The auction accepting below 21610 could test 21550-491 / 21390-309 / 21245-183 & 21085-039

Extended Hypos:

c) Above 22290, BNF can probe higher to 22336-393 / 22458-550 / 22600-710 / 22829-865 & 22930
d) Breaking below 21039, it could fall to 20970-880 / 20750-690 / 20589 / 20480 & 20391

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