Market Profile Analysis dated 14th July 2020

Nifty Jul F:  10614 [ 10764 / 10553 ]
HVNs – 10190 / 10293 / 10475 / 10570 / 10728 / 10764

Previous day’s report ended with this ‘day closed leaving a perfect Neutral Centre profile with small tails at both ends & a close right at the centre where both the DPOC & VWAP were overlapping

Post a Neutral Centre Day, one of the market player generally takes control and it was the same today as sellers took over and NF finally gave an initiative move away from the balance it had been forming for the last 6 days as it not only opened lower but left a selling tail in the IB (Initial Balance) from 10715 to 10764. The auction then made a rare extension handle in a ‘C’ period at 10687 and trended lower for most part of the day as it completed the 2 ATR objective of 10583 from previous day’s FA of 10879 and made lows of 10553 in the ‘H’ period stalling just above the 3 IB target of 10533 which was also the multiday FA from 3rd July and is now positional support. NF then made a pull back to VWAP as it formed a balance in the lower part of the day’s profile with the DPOC also shifting down to 10619 indicating shorts booking out as it closed the day at 10613.

Click here to view the MP Lite chart of how NF moved away from the 6-day composite

  • The NF Open was a Open Rejection Reverse (ORR)
  • The Day type was a Normal Variation Day – Down (NV)
  • Largest volume was traded at 10619 F
  • Vwap of the session was at 10638 with volumes of 168.9 L and range of 211 points as it made a High-Low of 10764-10553
  • NF confirmed a FA at 10879 on 13/07 and tagged the 2 ATR target of 10583 on 14/07.
  • 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. This FA has not been tagged and is now positional support.
  • NF confirmed a FA at 10440 on 02/07 and tagged the 2 ATR objective of 10868 on 13/07. This FA has not been tagged and is now positional support.
  • 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 10580-10619-10666

Main Hypos for 15.07.2020:

a) NF needs to stay above 10619 for a rise to 10640 / 10666-687 / 10718-740 & 10765*-794
b) The auction below 10608 can test lower levels of 10590 / *10556*-533 / 10480* & 10440

Extended Hypos:
c) Above 10794, NF can probe higher to 10810*-828 / 10852-865 & 10880-914
d) If 10440 is taken out, NF could fall to 10400* / 10367-350 & 10321-290**


BankNifty Jul F: 21396 [ 21944 / 21213 ]
HVNs – 21000 / 21345 / 21430 / 21840 / 22050 / 22180 / 22720 / 22806

Previous day’s report ended with this ‘The PLR remains down if the auction stays below this POC in the next session for a probe to 22001 / 21840 & 21545

BNF continued the imbalance on the downside as inspite of the 230 point gap down, it made an OH (Open=High) start and continued to drive lower leaving a selling tail in the IB from 21758 to 21944 and went on to make a big C side RE with the help of an extension handle at 21680 as it tagged that bullish extension handle of 21545 from 1st July and continued to probe down to complete the 2 IB target of 21416 in the D period itself. The auction then consolidated for the next 2 periods forming double inside bars before giving a fresh RE lower in the ‘G’ period as it made new lows of 21336 and followed it up with a lower low at 21213 in the ‘H’ period which was also the lows of the day. BNF made a small balance into the close building volumes at 21380 where it eventually closed to leave a ‘b’ shape profile for the day.

Click here to view the MP Lite chart of how BNF formed lower Value for the third consecutive day

  • The BNF Open was a Open Drive Down (OD)
  • The Day type was a Normal Variation Day – Down (NV)
  • Largest volume was traded at 21380 F
  • Vwap of the session was at 21461 with volumes of 77.6 L and range of 731 points as it made a High-Low of 21944-21213
  • BNF confirmed a FA at 22001 on 07/07 and tagged the 1 ATR objective of 22708 on 08/07. This FA got revisted in ‘T+5’ Days and is no longer a valid reference.
  • 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 21239-21380-21526

Main Hypos for 15.07.2020:

a) BNF needs to sustain above 21390 for a rise to 21444-480 / 21590-680 / 21768-840 & 21939-22000
b) The auction accepting below 21380 could test 31320-289 / 21239-120 / 21000* & 20901-784

Extended Hypos:

c) If 22000 is taken out, BNF could start a fresh probe to 22055-116 / 22175-236 / 22308-380 / 22430-448 & 22543-580
d) Breaking below 20784, there could be a fall to 20704-616 / 20525-484 / 20436-396 / 20300*-200 & 20139*

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