Market Profile Analysis dated 06th October 2020

Nifty Oct F:  11670 [ 11685 / 11566 ]

NF negated the upside tail of previous day’s profile as it opened with a gap up of 65 points and probed above PDH and went on to make new highs for the series at 11604 in the IB (Initial Balance) where it made a very narrow range of just 38 points. The auction then made a typical C side extension which saw it get rejected at 11613 and this led to a test of VWAP as NF continued to remain inside the IB building volumes at the 11590 level. The OAOR characteristic of a narrow range for most part of the day and then a big break out late in the afternoon was on display once again as the ‘K’ period made a fresh RE (Range Extension) higher triggering a spike into the close as NF completed the 3 IB objective of 11680 as it made highs of 11684 before closing the day at 11670. Spike Rules will be in play at open for the next session and the reference would be from 11659 to 11684 below which the extension handle of 11613 would be the support to watch.

Click here to view NF continue to move away from the 3-day composite on MPLite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Variation Day – Up (with a Spike close)
  • Largest volume was traded at 11590 F
  • Vwap of the session was at 11603 with volumes of 104.4 L and range of 118 points as it made a High-Low of 11684-11566
  • NF confirmed a FA at 10857 on 25/09 and tagged the 2 ATR objective of 11165 on 28/09. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Oct) is 10830
  • The VWAP & POC of Sep Series is 11353 & 11560 respectively.
  • The VWAP & POC of Aug Series is 11311 & 11311 respectively.
  • The VWAP & POC of Jul Series is 10897 & 10803 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 11571-11590-11617

HVNs – 10962 / 11220 / 11590

Main Hypos for 07.10.2020:

a) NF needs to sustain above 11680 for a rise to 11696-720 / 11742-769 & 11786-807 & 11829
b) The auction staying below 11662 could test 11646-627 / 11613-590 / 11570-550 & 11520*

Extended Hypos:
c) Above 11829, NF can probe higher to 11850-871 / 11890-918 & 11946
d) If 11520 is taken out, NF could fall to 11495-476 / 11455-425* & 11410-396


BankNifty Oct F:  22914 [ 22940 / 22543 ]

BNF opened with a big gap up of almost 300 points but got stalled right below the PDH of 22840 in the opening minutes which indicated sellers coming back in this zone leading to a probe lower in the IB as it went on to make a low of 22542 taking support at the Neutral Day’s VWAP. The auction then remained in the IB range forming a nice balance for most part of the day filling up the upper part of the previous profile while forming a prominent POC at 22650 before making a late RE in the ‘K’ period as BNF took out the FA of 22840 and went on to make new highs for the series at 22940 closing in an imbalance that means that the upside auction is still not complete. Today’s extension handle of 22838 would be the immediate reference on the downside for the next session below which today’s POC of 22650 & the VPOC of 22440 could come into play. On the upside, the probable targets would be the VPOCs of 22292 & 23150 above which we have the 1 ATR objective of 23415 from the negated FA of 22840 and the weekly HVN of 23700 over the next few sessions.

Click here to view BNF continue the current imbalance on MPLite

  • The BNF Open was a Open Auction In Range (OAIR)
  • The Day type was a Normal Variation Day – Up (with a Spike close)
  • Largest volume was traded at 22650 F
  • Vwap of the session was at 22722 with volumes of 72 L and range of 397 points as it made a High-Low of 22940-22543
  • BNF confirmed a FA at 22840 on 05/10 and almost tagged the 1 ATR objective of 22264 on the same day. This FA was tagged on 06/10 nad stands negated.
  • BNF had confirmed a FA at 20431 on 25/09 and tagged the 2 ATR objective of 21490 on 28/09. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (Oct) is 20490
  • The VWAP & POC of Sep Series is 22320 & 22320 respectively.
  • The VWAP & POC of Aug Series is 22444 & 21595 respectively.
  • The VWAP & POC of Jul Series is 22163 & 22087 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 22565-22650-22784

HVNs – 20538 / 20822 / 21400 / 21630 / 22640

Main Hypos for 07.10.2020:

a) BNF needs to sustain above 22945 for a rise to 22992* / 23078-150* / 23230-315 / 23371-415 & 23494-530
b) The auction staying below 22875 could test 22815 / 22760-722 / 22650-575 / 22500-440* & 22380-319

Extended Hypos:

c) Above 23530, BNF can probe higher to 23580-630 / 23724*-806 / 23880*-913 & 24000-080
d) Breaking below 22319, it could fall to 22264-155 / 22101*-020 / 21965 / 21896-835 & 21775

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