Market Profile Analysis dated 06th July 2020

Nifty Jul F:  10755 [ 10785 / 10661 ]
HVNs – 10190 / 10293 / 10475 / 10570

As expected, the non-trend day did give a move away but more than half of the move came in form of a gap up of 128 points as NF opened with an OH (Open=High) start at 10700 confirming a multi-day FA at 10533 after which it made a low of 10661 and reversed the probe to the upside making new highs of 10714 in the IB (Initial Balance) leaving a very narrow IB range of just 53 points. The auction then made a RE (Range Extension) higher in the ‘E’ period leaving an extension handle at 10714 which completed the 2 IB objective of 10767 while making a high of 10785 in the ‘I’ period and in the process hit the 1 ATR objective from the latest FA of 10533. NF then formed a balance in the late afternoon building volumes at 10758 where it eventually closed to leave a DD (Double Distribution) type profile with a small lower balance and a larger upper distribution with the extension handle of 10714 seperating both of them. The PLR would remain to the upside if the auction stays above 10714 with 10730 being an important level to watch in the coming session for a probable move towards 10814 / 10868 & 10950. However, on the downside, accpeting below 10714 could bring a test of 10637 & 10570 in the coming session(s)

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Variation Day – Up (NV)
  • Largest volume was traded at 10758 F
  • Vwap of the session was at 10730 with volumes of 129.4 L and range of 124 points as it made a High-Low of 10785-10661
  • NF confirmed a multi-day FA at 10533 on 06/07 and tagged the 1 ATR objective of 10742 on 06/07. The 2 ATR target is at 10950
  • NF confirmed a FA at 10440 on 02/07 and tagged the 1 ATR objective of 10654 on 06/07. The 2 ATR objective comes to 10868
  • NF confirmed a FA at 10172 on 29/06 and and the tagged the 2 ATR target of 10619 on 06/07. This FA is currently on ‘T+6’ Days.
  • The 18th June & 01st July Trend Day VWAPs of of 9957 & 10350  would be important support levels.
  • The settlement day Roll Over point (Jul) is 10240
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 respectively.
  • The VWAP & POC of Apr Series is 8999 & 9010 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 10702-10758-10781

Main Hypos for 07.07.2020:

a) NF needs to stay above 10758 for a rise to 10787-814 / 10847-868 / 10909-914 & 10940*-965
b) The auction accepting below 10750 can test lower levels of 10729-714 / 10680-637 / 10596-570* & 10542-536

Extended Hypos:
c) Above 10965, NF can probe higher to 10998 / 10033-055 / 11097-114 & 11133-165
d) If 10536 is taken out, NF could fall to 10512 / 10480*-440 / 10400* & 10367-350


BankNifty Jul F: 22226 [ 22444 / 22141 ]
HVNs – 21000 / 21294 / 21430 / 21840 / 21990 / 22200

BNF also opened higher with a big gap up of 357 points and even went on to make a freak tick of 22444 at open but remained in one of the narrowest daily range of just 303 points all day to give a consecutive Normal Day profile with another prominent POC at 22240. The failure to get a range as well as volume explansion is a worrying sign for further upmove in BNF as trade facilitation continues to be very poor for the last 3 sessions which means the auction could move lower to find buyers unless it gets some initiative volumes at open in the next session.

  • The BNF Open was a Open Auction Out of Range (OAOR) 
  • The Day type was a Normal Day
  • Largest volume was traded at 22240 F
  • Vwap of the session was at 22250 with volumes of 60.7 L and range of 282 points as it made a High-Low of 22162-21750
  • BNF confirmed a FA at 20901 on 29/06 and the tagged the1 ATR target of 21763 on 01/07. The 2 ATR objective comes to 22625
  • The 18th June & 01st July Trend Day VWAPs of 20494 & 21650 would be important support levels.
  • The settlement day Roll Over point (Jul) is 21430
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 respectively.
  • The VWAP & POC of Apr Series is 19605 & 19710 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 22191-22240-22288

Main Hypos for 07.07.2020:

a) BNF needs to sustain above 22290 for a rise to 22370-445 / 22548-650 / 22712-818 / 22880-920 & 23010
b) The auction accepting below 22194 could test 22141-086 / 21990*-939 / 21840* / 21750-649 & 21545-468

Extended Hypos:
c) If 23010 is taken out, BNF could start a fresh probe to 23100-160* / 23235-290 / 23370-440 / 23510-580 & 23630-700*
d) Breaking below 21468, there could be a fall to 21420-355 / 21223-120 / 21000* / 20901 & 20784

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