Market Profile Analysis dated 08th July 2020

Nifty Jul F:  10693 [ 10829 / 10675 ]
HVNs – 10190 / 10293 / 10475 / 10570 / 10730

NF opened higher and made new highs for the series at 10817 in the IB (Initial Balance) leaving yet another small IB range of just 61 points which has been the norm of this week so far as it made lows of 10756. The auction then remained in this narrow range till the ‘E’ period where it made a RE (Range Extension) lower and made new lows of 10737 as it took support just above the composite POC of 10730 and reversed the probe to the upside forming a nice balanced profile till late afternoon. NF then made a RE on the upside in the ‘I’ period and followed it up with a marginal higher high in the ‘J’ as it hit 10829 but like on the downside it failed to even tag the 1.5 IB objective of 10848 which meant lack of demand and absence of initiative buyers at these new highs. This triggered a big long liquidation move as the weak longs were forced to exit in the ‘K’ period which went on to make new lows for the day and in the process confirmed a FA (Failed Auction) at highs. NF went on to make lows of 10675 almost tagging the 1 ATR target of 10663 leaving a Neutral Extreme Profile with an extension handle at 10737. The reference for tomorrow open would be from 10675 to 10718.

  • The NF Open was a Open Auction (OA)
  • The Day type was a Neutral Extreme Day – Down (NeuX)
  • Largest volume was traded at 10795 F
  • Vwap of the session was at 10770 with volumes of 153.5 L and range of 154 points as it made a High-Low of 10829-10675
  • NF confirmed a FA at 10829 on 06/07 and 1 ATR target is at 10663
  • 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 has not been tagged and is now positional support.
  • 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 10749-10765-10814

Main Hypos for 09.07.2020:

a) NF needs to get above 10716 for a rise to 10740-764 / 10788-816 & 10847-868
b) The auction below 10663-657 can test lower levels of 10637 / 10596-570 & 10542-536

Extended Hypos:
c) Above 10868, NF can probe higher to 10909-914 / 10940*-965 / 10998 & 11033
d) If 10536 is taken out, NF could fall to 10500-480* / 10440-400* & 10367-350


BankNifty Jul F: 22611 [ 23118 / 22533 ]
HVNs – 21000 / 21294 / 21430 / 21840 / 21990 / 22240

BNF also opened higher and was stronger of the 2 indicies as it remained above PDH (Previous Day High) and completed the 1 ATR target of 22708 from the FA of 22001 as it went on to make new highs of 22815 in the IB. The auction continied to probe higher giving a ‘C’ side RE where it made highs of 22880 after which it began to consolidate forming a balanced profile as it made similar highs in the ‘E’ period before completing the 1.5 IB objective of 22916 in the ‘G’ period and went on to make higher highs till the ‘J’ period as it hit 23118. However, this OTF (One Time Frame) move stopped in the ‘K’ period which turned out to be the biggest TPO in terms of range as it engulfed the entire day’s profile and this led to new lows being hit in the ‘L’ & ‘M’ periods as BNF also completed a Neutral Extreme profile. Value for the day was completely higher so acceptance above 22640 could bring a test of 22750 & 22880-940. Reference for the next open would be from 22615 to 22533.

  • The BNF Open Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Extreme Day – Down(NeuX)
  • Largest volume was traded at 22750 F
  • Vwap of the session was at 22833 with volumes of 83.2 L and range of 585 points as it made a High-Low of 23118-22533
  • BNF confirmed a FA at 22001 on 07/07 and tagged the 1 ATR objective of 22708 on 08/07. The 2 ATR objective comes to 23414
  • BNF confirmed a FA at 20901 on 29/06 and the tagged the2 ATR target of 22625 on 07/07. This FA has not been tagged and is now positional support.
  • 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 22639-22750-22923

Main Hypos for 09.07.2020:

a) BNF needs to sustain above 22640 for a rise to 22685-750 / 22815-922 / 22980 / 23100-160* & 23235-290
b) The auction accepting below 22563 could test 22468-423 / 22351 / 22290-240 / 22141-080 & 22000-21939

Extended Hypos:

c) If 23290 is taken out, BNF could start a fresh probe to 23370-440 / 23510-580 / 23630-700* / 23820-856 & 23991
d) Breaking below 21939, there could be a fall to 21840* / 21750-649 / 21545-468 / 21420-319 & 21223

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