Market Profile Analysis dated 11th November 2020

Nifty Nov F:  12755 [ 12774 / 12577 ]

NF opened with the 5th consecutive gap up and continued to probe higher in the IB (Initial Balance) as it made a high of 12764 but saw considerable contraction of range as well as volumes in the ‘B’ period which hinted at poor trade facilitation or weakening of demand. The auction then made a small probe lower in the ‘C’ period as it broke below VWAP and once again failed to find good demand which led to a big move on the downside over the next 3 periods as sellers pressed the pedal generating multiple REs (Range Extension) as it tagged 12595 in the ‘F’ period. NF then gave a quick bounce to 12687 in the ‘G’ period but the inability to get above VWAP meant that the supply was still active and the PLR was still to the downside which eventually led to a fresh RE in the ‘I’ period resulting in new lows of the day at 12577 which was also previous day’s VWAP and finally brought in good demand which not only forced the shorts to cover but formed new highs for the day at 12774 in the ‘L’ period leaving a Neutral Day profile with completely higher Value and the dPOC at 12738.

Click here to view the latest profile of NF on MPLite

  • The NF Open was a Open Auction Out of Range (OAOR)
  • The Day type was a Neutral Day (NeuD)
  • Largest volume was traded at 12738 F
  • Vwap of the session was at 12685 with volumes of 160.3 L and range of 197 points as it made a High-Low of 12775-12577
  • NF confirmed a FA at 11744 on 04/11 and tagged the 2 ATR objective of 12089 on 05/11. This FA is currently on ‘T+6’ Days.
  • The settlement day Roll Over point (Nov) is 11665
  • The VWAP & POC of Oct Series is 11793 & 11897 respectively.
  • The VWAP & POC of Sep Series is 11353 & 11560 respectively.
  • The VWAP & POC of Aug Series is 11311 & 11311 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 12657-12738-12769

HVNs – 11740 / 11819

Hypos for 12.11.2020:

a) NF needs to sustain above 12770 for a rise to 12819 / 12870 & 12930
b) The auction staying below 12750 could test 12705 / 12665 / 12620 & 12580


BankNifty Nov F:  28816 [ 28999 / 28165 ]

BNF opened below the selling tail of 28725 to 28796 but was swiftly rejected from below previous day’s POC of 28655 which led to a fresh probe higher as it negated the selling tail and made new highs for the week at 28925. The auction then made an inside bar in the ‘B’ period followed by a late C side RE higher which did not sustain after which BNF made another attempt in the ‘D’ period where it made new highs of 28999 but once again failed to stay above the IBH which indicated that the buying was getting exhausted and the break of VWAP expediated the move lower as it not only broke below 28655 but went on to make a RE on the downside in the ‘E’ period which confirmed a FA (Failed Auction) at top. The ‘F’ period saw a lower low of 28423 being made from where it gave a bounce to the day’s VWAP but could only leave a PBH (Pull Back High) there at 28735 which triggered a fresh leg lower as the auction made fresh REs in the ‘H’ & ‘I’ periods where it made a low of 28165 completing the 2 IB objective of the day and in the process also hit the 1 ATR target of 28355 from the FA. The dual objective being hit on the downside saw a big retracement into the close as BNF confirmed singles at lows from 28325 to 28165 and went on to hit 28872 before closing the day around the dPOC of 28842. Value for the day was overlapping to higher which is giving a 2-day balance with Value at 28371-28648-28880 so will need to check if the auction continues to form a balance or gives a move away from here.

Click here to view the 2-day balance in BNF on MPLite

  • The BNF Open was a Open Auction (OA)
  • The Day type was a Normal Vairation Day – Down (NV)
  • Largest volume was traded at 28842 F
  • Vwap of the session was at 28670 with volumes of 110.2 L and range of 834 points as it made a High-Low of 28999-28165
  • BNF confirmed a FA at 28999 on 11/11 and tagged the 1 ATR objective of 28355 on the same day. The 2 ATR target comes to 27712.
  • The settlement day Roll Over point (Nov) is 24110
  • The VWAP & POC of Oct Series is 23740 & 24468 respectively.
  • The VWAP & POC of Sep Series is 22320 & 22320 respectively.
  • The VWAP & POC of Aug Series is 22444 & 21595 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 28530-28842-28887

HVNs – 24110 / 25455 / 26300

Hypos for 12.11.2020:

a) BNF needs to sustain above 28888 for a rise to 28974 / 29060 / 29179 / 29365 / 29500 & 29643
b) The auction staying below 28840 could test 28685 / 28575 / 28430 / 28325 / 28180 & 28050

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