Market Profile Analysis dated 09th July 2020

Nifty Jul F:  10823 [ 10845 / 10713 ]
HVNs – 10190 / 10293 / 10475 / 10570 / 10730

Once again there was no follow up to a Neutral Extreme profile as NF got rejected from around the top of the reference zone mentioned in previous report as it left a buying tail from 10737 to 10713 in the IB (Initial Balance) negating the selling extension handle of 10737 too as the auction made a slow probe higher and went on to test the yPOC of 10795 in the ‘H’ period and gave a sharp retracement to break below the VWAP but left a PBL (Pull Back Low) at 10747 which led to a fresh probe higher as NF closed in a spike and went on to negate the FA of 10829 as it made new highs of 10845. Spike Rules will be in play for the next open and the reference is from 10818 to 10845.

On the larger timeframe, we have a nice weekly balance being formed with the current Value at 10710-10755-10800 and the rejection of today’s spike could NF continue to remain in this Value. Click here to view the MP Lite chart of the same.

  • The NF Open was a Open Auction In Range (OAIR)
  • The Day type was a Normal Variation Day – Up (NV)
  • Largest volume was traded at 10764 F
  • Vwap of the session was at 10776 with volumes of 129.5 L and range of 132 points as it made a High-Low of 10845-10713
  • NF confirmed a FA at 10829 on 06/07 and 1 ATR target is at 10663. This FA got revisited on 09/07 & thus stands negated.
  • 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 10740-10764-10809

Main Hypos for 10.07.2020:

a) NF needs to stay above 10829 for a rise to 10847-868 / 10909-914 / 10940*-965 & 10995
b) The auction accepting below 10825 can test lower levels of 10800 / 10776-735 / 10710 & 10695-657

Extended Hypos:
c) Above Above 10995, NF can probe higher to 11033-55 / 10097 / 11114 & 11133-65
d) If 10657 is taken out, NF could fall to 10637 / 10596-570 / 10542-536 & 10500-480*


BankNifty Jul F: 22908 [ 22980 / 22650 ]
HVNs – 21000 / 21294 / 21430 / 21840 / 21990 / 22240 / 22720 / 22800

BNF also rejected previous day’s Neutral Extreme reference and opened higher but remained in a very narrow range for most part of the day as it tested previous day’s selling zone of 22880 and was rejected giving a swift move lower as it made an attempt to make a RE (Range Extension) lower in the ‘H’ period which failed. The lack of new supply in this break led to a probe back to the IBH and this time the auction went on to make a successful RE to the upside confriming a new FA (Failed Auction) at 22650 as it spiked higher into the close to give a hat-trick of Neutral Extreme profiles. Value & Range for the day remained inside previous day thus giving a nice 2-day Gaussian profile with Value at 22681-22820-22891 with a close above the VAH indicating that the PLR (Path of Least Resistance) would be to the upside towards 23313 & 23414 provided it stays above 22880 in the next sessionClick here to view the MP Lite chart of the 2-day Gaussian profile in BNF

  • The BNF Open Open was a Open Auction In Range (OAIR)
  • The Day type was a Neutral Extreme Day – Up (NeuX)
  • Largest volume was traded at 22800 F
  • Vwap of the session was at 22808 with volumes of 60.1 L and range of 330 points as it made a High-Low of 22980-22650
  • BNF confirmed a FA at 22650 on 09/07 and the 1 ATR objective comes to 23313
  • 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 22734-22800-22862

Main Hypos for 10.07.2020:

a) BNF needs to sustain above 22922 for a rise to 22980 / 23100-160* / 23230-313 / 23370-440 & 23510-580
b) The auction accepting below 22862 could test 22800-734 / 22675-580 / 22468-423 / 22351 & 22290-240

Extended Hypos:

c) If 23580 is taken out, BNF could start a fresh probe to 23630-700* / 23820-856 / 23991 / 24100 & 24265
d) Breaking below 22240, there could be a fall to 22141-080 / 22000 / 21939-840* / 21750-649 & 21564-545

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