Market Profile Analysis dated 10th August 2020

Nifty Aug F:  11293 [ 11335 / 11242 ]

HVNs – 10918 / 10970 / 11095 / 11160 / 11196

NF opened higher & stayed above PDH (Previous Day High) as it continued the probe higher in the IB (Initial Balance) while tagging 11322 and left a buying tail from 11296 to 11256 which indicated that the PLR (Path of Least Resistance) was to the upside. The auction then made a test of this buying tail in the ‘C’ period as it left a PBL (Pull Back Low) at 11295 which re-confirmed the upside bias and even led to a RE (Range Extension) in the ‘D’ period followed by a higher high of 11334 in the ‘E’ period as it completed the 1 ATR objective from the weekly FA of 10883 (Read about weekly FA in the report here) but trade facilitation was poor as NF could not even tag the 1.5 IB target of 11356 inspite of getting accepted above IBH which meant lack of fresh demand. This led to another test of the morning tail in the ‘G’ period as the auction left a new PBL at 11287 and in the process was completing a ‘p’ shape profile for the day but saw another long liquidation move happening in the ‘J’ period as NF not only negated the entire morning tail but went on to make a RE to the downside as it briefly got back into previous day’s range hitting new lows for the day at 11242 but was swiftly rejected from there as it left a small tail to get back into the IB and then played out the 45 degree rule as it probed higher to the prominent DPOC of 11310 and closed around it to leave a Neutral Centre Day. Value for the day was completely higher as NF moved away from the 3-day composite but would need fresh demand above today’s POC for the PLR to remain up and in doing so could even confirm a multi-day FA at 11242 triggering a fresh leg higher.

Click here to view the MP Lite chart of NF moving away from the 3-day composite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Centre Day (NeuD)
  • Largest volume was traded at 11305 F
  • Vwap of the session was at 11302 with volumes of 94.1 L and range of 93 points as it made a High-Low of 11334-11242
  • The settlement day Roll Over point (Aug) is 11095
  • The VWAP & POC of Jul Series is 10897 & 10803 respectively.
  • The VWAP & POC of Jun Series is 10110 & 10110 respectively.
  • The VWAP & POC of May Series is 9183 & 9109 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 11287-11305-11323

Main Hypos for 11.08.2020:

a) NF needs to sustain above 11298 for a rise to 11326-350 / 11391 & 11427-442
b) The auction staying below 11280 could fall to 11256-234 / 11193-164 & 11149

Extended Hypos:
c) Above 11442, NF can probe higher to 11465-484 / 11520-556 & 11580
d) If 11149 is taken out, NF could fall to 11130-094 / 11075-057 & 11022-004


BankNifty Aug F:  21956 [ 22099 / 21802 ]

HVNs – 21545 / 21615 / 22151

Click here to view the MP Lite chart of BNF moving away from the 3 day composite

BNF also opened higher and similar to NF, stayed above PDH continuing the probe on the upside as it revisted the FA of 22000 and went on to tag the weekly VPOC of 22060 in the ‘A’ period itself while making a high of 22099 but could not attract fresh demand and remained in this narrow IB range of 257 points with tails at both ends for most part of the day untill the auction made a RE to the downside in the ‘J’ period as it entered previous day’s range but was rejected back from just above the VAH of the 3-day composite it was forming last week and went on to get back to the prominent TPO POC of the day at 21980 which would be the important reference to watch at open for the next session.

  • The BNF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Normal Day
  • Largest volume was traded at 22030 F
  • Vwap of the session was at 21995 with volumes of 54.2 L and range of 297 points as it made a High-Low of 22099-21802
  • BNF confirmed a FA at 22000 on 05/08 and almost tagged the 1 ATR objective of 21440 on 06/08. This FA was re-visited on ‘T+3- Days’ and is no longer a valid reference.
  • The settlement day Roll Over point (Aug) is 21615
  • The VWAP & POC of Jul Series is 22163 & 22087 respectively.
  • The VWAP & POC of Jun Series is 20918 & 21000 respectively.
  • The VWAP & POC of May Series is 18767 & 19633 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 21955-22030-22060

Main Hypos for 11.08.2020:

a) BNF needs to sustain above 21980 for a rise to 22030-080 / 22160-245 / 22333-396 & 22458-550
b) The auction accepting below 21945 could test 21851-775* / 21697-654 / 21558 / 21505-480 & 21400

Extended Hypos:

c) Above 22550, BNF can probe higher to 22600-710 / 22829-865 / 22930-23000* & 23127-160
d) Breaking below 21400, it could fall to 21312-245 / 21183 / 21085-039 / 20970-880 & 20750

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