Market Profile Analysis dated 12th May 2020

Nifty May F:  9212 [ 9264 / 9037 ]

HVNs – 9111 / 9218 / (9285) / 9320 / 9375 / 9800 / 9822-40

NF opened with a gap down of 87 points much below yesterday’s spike and went on to break previous week’s low of 9125 as it continued to probe lower in the IB (Initial Balance) making a low of 9037 and left a selling tail from 9116 to 9150 after which it stayed below this tail for most part of the day but failed to make a RE on the downside forming a ‘b’ shape profile indicating that the sellers were getting exhausted. The auction then made the first attempt to get back into previous week’s range in the ‘H’ period but was rejected from the morning selling tail as it hit 9139 after which it went on to break below VWAP but was rejected from there as well to leave a PBL (Pull Back Low) of 9072 and these rotations formed the day’s profile from a ‘b’ to a nice bell and this completion of a balance led to an imbalance in the form of a spike higher from the ‘K’ period as NF left an extension handle at 9150 and made a super quick swipe of previous day’s spike zone of 9202 to 9265 before closing the day at 9212. Spike Rules would again be in play for the next session with the reference being 9182 to 9265.

  • The NF Open was a Open Auction Out Of Range (OAOR)
  • The day type was a Normal Variation Day – Up (NV) with a spike close
  • Largest volume was traded at 9111 F
  • Vwap of the session was at 9127 with volumes of 193.2 L and range of 227 points as it made a High-Low of 9264-9037
  • NF had confirmed a multi-day FA at 8706 on 09/04  and tagged the 2 ATR objective of 9756 on 30/04. This FA has not been tagged & is now important support.
  • The Trend Day VWAP of 8643 would be important support level.
  • The settlement day Roll Over point (May) is 9822
  • The VWAP & POC of Apr Series is 8999 & 9010 respectively.
  • The VWAP & POC of Mar Series is 9146 & 8592 respectively.
  • The VWAP & POC of Feb Series is 11944 & 12125 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 9040-9111-9165

Main Hypos for the next session:

a) NF needs to sustain above 9218-31 for a rise to 9267-9292 / 9321-36 / 9366-95 / 9416 & 9442-48
b) The auction has immediate support at 9186-82 below which could fall to 9150 / 9123-11 / 9085-69 / 9042-37 & 9012-8989

Extended Hypos:
c) Above 9448, NF can probe higher to 9462-75 / 9518-49 / 9574-94 / 9616-25 & 9653-70
d) Below 8989, the auction can fall further to 8975-40 / 8900 / 8876-45 / 8822-13 & 8792-60


BankNifty May F:  18839 [ 18991 / 18209 ]

HVNs – 18350 / 19340 / 19465-510 / 19650 / 19830 / (21600) / (21850)

As mentioned in previous day’s report, BNF did open below PDL in form of a gap down plus an OH start at 18696 and continued to probe lower as it went on to tag the VPOC of 18300 while making a low of 18250 in the IB. However, similar to NF, the auction failed to make a RE lower and in fact failed in the attempt it made at the end of the ‘E’ period & even as the ‘F’ period began and this failure meant the lack of sellers. BNF then started to form a ‘b’ shape profile for most part of the day but like what NF did in the ‘K’ period, here also we got a spike plus an extension handle at 18696 as the auction confirmed a FA at 18209 and went on to tag the 1 ATR objective of 18938 while making a high of 18991 in the ‘L’ period. BNF then made a retracement down but took support just above the extension handle and closed the day at 18839 to leave a Neutral Extreme profile. The FA today negates the down move which started from the FA of 21932 we had on 30th April.

  • The BNF Open was a Open Auction Out of Range (OAOR)
  • The day type was a Neutral Extreme Day -Up (NeuX)
  • Largest volume was traded at 18350 F
  • Vwap of the session was at 18507 with volumes of 86.1 L and range of 782 points as it made a High-Low of 18991-18209
  • BNF confirmed a FA at 18209 on 12/05  and tagged the 1 ATR objective of 18938 on the same day itself. The 2 ATR target from this FA comes to 19668.
  • BNF confirmed a FA at 21932 on 30/04  and tagged not just the 1 ATR objective of 21028 but also the 2 ATR target of 20125 on 04/05. This FA has not been tagged and is now positional supply point.
  • BNF confirmed a FA at 17977 on 07/04  and tagged the 2 ATR target of 21771 on 30/04. This FA has not been tagged and is now positional support.
  • The settlement day Roll Over point (May) is 21380
  • The VWAP & POC of Apr Series is 19605 & 19710 respectively.
  • The VWAP & POC of Mar Series is 22104 & 20248 respectively.
  • The VWAP & POC of Feb Series is 30692 & 30692 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 18230-18350-18561

Main Hypos for the next session:

a) BNF needs to sustain above 18855 for a rise to 18915-19010 / 19076-188 / 19262-280 / 19340-393 / 19458-490 / 19555-602 & 19668-680
b) The auction has immediate support at 18792 below which it could test 18716-696 / 18570-543 / 18480-414 / 18375-350 / 18270-209 / 18160-100 & 18000-17977

Extended Hypos:
c) Above 19680, BNF can probe higher to 19735-836 / 19890-965 / 20012-90 / 20160-220 / 20324-396 / 20430-535 & 20600
d) Below 17977, lower levels of 17850-828 / 17750-705 / 17580 / 17480-460 / 17404-376 / 17311-225 & 17160-075 could come into play

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