Market Profile Analysis dated 07th December 2023

Nifty Dec F: 21030 [ 21048 / 20956 ]

NF made a rare OAIR start (first one of the Dec series) stalling right at yPOC of 21029 from where it made a swipe below previous Value while making a low of 20956 but could not take out the mini buying tail from 20953 to 20941 forming a narrow 31 point range inside bar in the B TPO. (P.S: Though there was a freak tick at 21048 at open, OF did not show any volumes above 21029)

The C side then did what it does best making a look down below B but getting rejected triggering a short covering squeeze into the D period where the auction made new highs for the day at 21046 but failed to get fresh demand and this lack of OTF (Other Time Frame) players then caused it to remain inside the range of D for the rest of the day building volumes at 21020 and leaving an inside bar plus a Normal Day.

We have had completely overlapping Value for the first time this series resulting in a 2-day Gaussian Curve with Value at 20999-21031-21047 and a close right at the POC so there is a good chance of a move away from here in the coming session(s) provided it is backed by initiative volumes with the PLR (Path of Least Resistance) still very much to the upside. (Click here to view the composite only on Vtrender Charts)

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Business Areas for 08th Dec 2023

BankNifty Nov F: 46926 [ 47367 / 46845 ]

BNF opened right at previous VAL and seemed to give a drive down breaking below 05th Dec’s low of 46749 and tagging the closing HVN of 46644 from 04th Dec while making a low of 46600 taking support just above the extension handle of 46574 and all this action happened in the first 5 minutes of the day after which it got back above day’s VWAP at the close of A period and settled down into a narrow 99 point range inside bar in the B TPO leaving tails at both ends at the close of the Initial Balance.

The auction then made a typical C side probe below VWAP checking for fresh supply but failed to find any and was swiftly rejected leaving a PBL at 46700 triggering a RE (Range Extension) to the upside as it got back into previous day’s Value and promptly completed the 80% Rule with the D period making new highs of 47110 followed by marginal new highs of 47120 in the E TPO signalling absorbtion of selling from this old zone.

BNF consolidated and remained inside the range of E period for the rest of the day except for an attempt it made in the I TPO to probe higher but could only manage 47125 as it built the highest volumes for the day at 47026 and closed just above it leaving a ‘p’ shape kind of a profile with completely overlapping Value so the combination of a ‘b’ plus ‘p’ over the last 2 sessions means it is currently in a balance with the 2-day composite Value at 46894-47012-47063 and the structure is also a 3-1-3 profile with sellers being seen in the zone above 47125 to 47400 whereas on the downside, demand came back at 46830 levels yesterday which will be the immediate reference below which we have the buying singles from 46700 to 46600. (Click here to view the composite only on Vtrender Charts)

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Business Areas for 08th Dec 2023

You can check the monthly charts & other swing levels for both Nifty & BankNifty here & for the weekly charts & analysis, please click here.