Market Profile Analysis dated 12th Feb

Nifty Feb F:

NF opened inside previous day’s Range & Value and attempted to probe higher but was rejected back below yVAH after making a high of 10932 as the auction completed the 80% Rule of tagging yVAL in the ‘A’ period itself. The ‘B’ period probed lower but took support at 10883 just above the pull back low of 10880 to close back above yVAL indicating a low conviction day as NF was balancing in previous day’s Value Area. (Click here to view the profile chart for better understanding) NF then completed the 80% Rule on the upside in the next 3 periods as the auction made an high of 10925 in the ‘E’ period and was again unable to stay above yVAH of 10922 to close below it. This triggered the 80% Rule for the third time in the day and NF completed the hatrick as it probed lower for the next 3 periods to make a low of 10886 in the ‘H’ period but again got rejected from there to leave a higher low for the day and left scope for yet another rotation back to yVAH. The ‘I’ period made an inside bar but ‘J’ & ‘K’ probed higher to complete the 4th round of 80% Rule which saw NF making a higher high of 10927 which got rejected and this failed move triggered a trending move into the close as the auction broke below the IBL to leave an extension handle at 10883 and went on to break previous day low of 10870 to confirm a multiday FA at 10946 resuming the imbalance downside after making a balance from yesterday. NF went on to make lows of 10850 and has a spike from 10883-10850 which will be the reference to watch at tomorrow’s open.

• The NF Open was a Open Auction In Range (OAIR)
• The day type was a Normal Day (with a Spike lower)
• Largest volume was traded at 10904 F
• Vwap of the session was at 10898 with volumes of 81.1 L in a session which traded a High-Low range of 10932-10850 for a range of 81 points 
• NF confirmed a multi-day FA at 10946 today and the 2 ATR move down comes to 10822 & the 2ATR move lower is at 10699
• NF had left a FA at 10830 on 04/02 and completed the 2 ATR move up of 11073. This FA is currently on ‘T+7’ days.
• NF had left a FA at 10710 on 04/01 and completed the 2 ATR move up on 15/01 and was strong support. The auction broke below this FA twice last week but has got back above it.
• NF had left a FA at 10580 on 26/12 & completed the 2 ATR move up to 10862. This FA has not been tagged and is now strong support
• The Trend Day VWAP & POC of 06/02 11046 & 11035 was broken on 08/02 and the closed below them so now they are no longer support levels
• The Trend Day VWAP & POC of 31/01 10793 & 10775 will be important levels going forward
• The VWAP & POC of Jan Series is 10795 & 10823 respectively
• The VWAP & POC of Dec Series is 10796 & 10741 respectively
• The VWAP & POC of Nov Series is 10480 & 10580 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 10874-10904-10929

Hypos / Estimates for the next session:

a) NF closed in a spike so Spike Rules will come into play at open
b) Below 10850, NF can probe lower to FA of 10830 & 10818
c) Immediate resistance for the auction is at 10883-887 above which it can probe higher to 10902 & 10923-927
d) NF has important support in the zone of 10793-789 below which can tag the vPOC of 10775 and pull back low of 10767
e) Above 10927, NF can move towards 10946 & 10963 which will act as major resistance for this week

BankNifty Feb F:

BNF opened with a freak OL of 27238 but the auction stayed above yVAH of 27300 post open and probed higher to get above previous day’s high making a high of 27370 in the first 10 minutes but was not able to sustain above PDH of 27350 leaving a small IB of just 60 points if the freak open was ignored. (Click here to view the profile chart for better understanding) The auction stayed in the narrow range of 27310-27350 making an inside bar in the ‘C’ period after which it attempted to probe higher in ‘D’ breaking above IBH to make a new high of 27384 but could not sustain and started a OTF (one time frame) down move till the ‘H’ period as it got into yesterday’s Value and made a low of 27265 taking support just above the yPOC. BNF had also left a probable FA at day’s high which would be the new reference for any bounce as the ‘I’ period made an inside bar and probed higher in the ‘J’ period again tagging the PDH but unable to get above it. The ‘K’ period at open looked above 27350 but was swiftly rejected after making a high of 27355 and this rejection led to a trending move lower in BNF leaving an extension handle at 27265 to give a Neutral Extreme Down Day making a low of 27086 almost tagging the 1 ATR move down from the FA of 27384. The Neutral Extreme reference for tomorrow’s open would be 27167-27086

• The BNF Open was a Open Auction
• The day type was a Neutral Extreme Day (Down)
• Largest volume was traded at 27335 F
• Vwap of the session was at 27284 with volumes of just 23.5 L in a session which traded a High-Low range of 27384-27086 for a range of 298 points
• BNF confirmed a FA at 27384 today and the 1 ATR move down comes to 27060. The 2 ATR move lower is at 26736
• BNF confirmed a FA at 27353 on 06/02 but it got negated on 08/02. BNF could not get above this FA today also so the 1 ATR move down of 26965 is still in play
• BNF confirmed a FA at 27716 on 23/1 and completed the 2 ATR move down hence is now strong resistance
• The VWAP & POC of Jan Series 27236 & 27514 respectively
• The VWAP & POC of Dec Series 26713 & 26832 respectively
• The VWAP & POC of Nov Series 25686 & 26218 (Spot) 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 27156-27335-27374

Hypos / Estimates for the next session:

a) BNF remains weak below 27090-85 for a move to 27030-20 & vPOC of 26960
b) Immediate resistance is at 27167 above which BNF can probe higher to 27232-265 and 27310-328
c) Below 26960, the auction can test lower supports of 26900-885 and 26800
d) On the upside, the FA of 27384 is now important reference above which BNF can move to 27430 & 27488

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