Market Profile Analysis dated 08th June 2020

Nifty Jun F:  10165 [ 10319 / 10113 ]

HVNs – 9093 / 9275 / 9433 / 9785 / 9868 / 10020 / 10100

NF opened with a big gap up of almost 150 points as it made a high of 10319 at open and as happens most of the times with a large gap, the auction settled into a typical OAOR (Open Auction Out of Range) forming a balance within a narrow range of 10295 to 10245 not just in the IB (Initial Balance) but till the ‘E’ period. The ‘G’ period then gave the move away from this balance in form of a RE to the downside as NF left an extension handle at 10245 and closed the daily as well as the weekly gap up as it went on to make a lower low in the ‘H’ period at 10158 completing the 2 IB objective as it stalled right at the 3-day composite VAH. NF continued to probe lower in the ‘I’ period forming new lows of 10133 from where it gave a retracement back to 10196 in the ‘J’ period confirming a PBH (Pull Back High) there which triggered a new leg to the downside in the ‘K’ period as the auction made a fresh RE lower making new lows of 10113 as it took support just above Friday’s VWAP of 10108 which marked the lows for the day where it finally got some swift rejection as leaving a small tail till 10133 and completed the lower distribution in the last hour to leave a picture perfect Double Distribution Trend Day profile. Value for the day was higher thanks to the big gap up with the HVN of lower distribution at 10165 being the immediate reference for the next session. Staying below this, the auction could move towards the composite VPOC of 10094 & the FA of 10040 in the coming session and on the upside it would need to get above 10196 to fill up today’s low volumes zone and could move higher to test the dPOC and the HVN of the uppper distribution at 10270.

(check the MP Lite chart of today’s action in NF with regard to the 3-day composite here)

  • The NF Open was a Open Auction Out of Range  (OAOR)
  • The day type was a Double Distribution Trend Day – Down (DD)
  • Largest volume was traded at 10270 F
  • Vwap of the session was at 10216 with volumes of 146.6 L and range of 206 points as it made a High-Low of 10319-10113
  • NF confirmed a FA at 10040 on 05/06 and tagged the 1 ATR objective of 10241 on 08/06. The 2 ATR target from the FA comes to 10442.
  • The Trend Day VWAP of 9165 would be important support level.
  • The settlement day Roll Over point (Jun) is 9426
  • The VWAP & POC of May Series is 9183 & 9109 respectively.
  • The VWAP & POC of Apr Series is 8999 & 9010 respectively.
  • The VWAP & POC of Mar Series is 9146 & 8592 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 10175-10270-10309

Main Hypos for the next session:

a) NF needs sustain above 10165 for a rise to 10196-228 / 10270-293 & 10320-345
b) Staying below 10158, the auction could test 10108-093* / 10040-14 & 9980

Extended Hypos:
c) Above 10345, NF can probe higher to 10375 / 10401-410 / 10440-455 & 10504-544*
d) Below 9980, the auction can fall further to 9932 / 9883-9868* / 9814 & 9785


BankNifty Jun F:  21161 [ 21775 / 20870 ]

HVNs – 17800 / 19000 / 19186 / 19980 / 20380 / 20750 / (20940) / 21000

BNF also opened with a big gap up of 669 points and made a high of 21775 in the ‘A’ period but after which made the narrowest IB range of this series of just 325 points as it started to coil and form a mini balance building volumes at 21540 till the ‘G’ period when similar to NF, the auction not only made a RE to the downside but left a big 200 point tail from 21450 tp 21240 and went on to enter the 3-day composite Value as it made lows of 20962 in the ‘I’ period looking set to tag the composite POC of 20761. BNF did give a retracement to 21226 in the ‘K’ period but stalling right below the selling tail indicated that the supply was still active in this zone which led to a new low for the day at 20870where it was swiftly rejected as it left a tail from 20962 to 20870 and closed near the HVN of the lower distribution at 21150. The day type was a perfect Double Distribution Trend Day Down as BNF made new highs, formed a balance in previous week’s selling tail but could not get fresh demand leading to a retracement to Friday’s VAH. Value for the day was higher and the buying tail from 20962 would be the important reference for the next session for a probe towards 21540 failing which BNF could move towards the VPOC of 20740.

(check the MP Lite chart of today’s action in BNF with regard to the 3-day composite here)

  • The BNF Open was a Open Auction Out of Range  (OAOR)
  • The day type was a Double Distribution Trend Day – Down (DD)
  • Largest volume was traded at 21540 F
  • Vwap of the session was at 21338 with volumes of 83.4 L and range of 905 points as it made a High-Low of 21775-20870
  • BNF confirmed a FA at 20388 on 05/06 and completed the 1 ATR objective of 21148 on same day. The 2 ATR target from this FA comes to 21907.
  • The Trend Day VWAP of 18138 would be important support level.
  • The settlement day Roll Over point (Jun) is 19035
  • The VWAP & POC of May Series is 18767 & 19633 respectively.
  • The VWAP & POC of Apr Series is 19605 & 19710 respectively.
  • The VWAP & POC of Mar Series is 22104 & 20248 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 21140-21540-21720

Main Hypos for the next session:

a) BNF needs to sustain above 21192 for a rise to 21250-312 / 21450-540 / 21648-695 / 21785-888 & 21932-22000
b) Staying below 21120, the auction could test 21030-20950 / 20870-796 / 20740-616 / 20556-440 & 20388-250

Extended Hypos:
c) Above 22000, BNF can probe higher to 22110-200 / 22350-448 / 22520-587 / 22650 & 22720-780
d) Below 20250, lower levels of 20186-088 / 20022-19960 / 19877-820 / 19764-650 & 19575-500 could come into play

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