Market Profile Analysis dated 15th Jan 2020

Nifty Jan F:  12378 [ 12392/ 12319 ]

HVNs – 12040 / 12062 / 12113 / 12195 / 12265 / 12290 / 12330 / 12357 / (12395)

NF opened below the extension handle of 12373 and got rejected from the spike zone giving an ORR (Open Rejection Reverse) start as it probed lower briefly breaking below the PDL (Previous Day Low) of 12331 in the IB (Initial Balance) as it made lows of 12325 but could not break the weekly lows of 12323 after which it began to form a balance in a narrow range of just 20 points till the ‘H’ period as it left similar highs at 12246 in the E & F periods indicating that the morning supply was still persisting. The auction then made a RE (Range Extension) to the downside in the ‘I’ period making new lows for the week at 12319 but this time left poor lows there in the ‘J’ period which meant that there was no new selling coming in and this led to a big short covering move into the close as NF negated the entire selling tail of the day & went on to make a RE to the upside confirming a FA (Failed Auction) as lows as it made highs of 12392 leaving a Neutral Extreme Day. NF is in the process of forming a balance this week as we have a 3-day composite with Value at 12332-12355-12365 with the lows being exactly at Friday’s VAL so chances are good that it continues to remain in this composite making the profile complete before giving a move away.

Click here to view the MPLite chart of the 3-day composite in NF

  • The NF Open was an Open Rejection Reverse (ORR)
  • The day type was a Neutral Extreme Day (NeuX)
  • Largest volume was traded at 12335 F
  • Vwap of the session was at 12343 with volumes of 63.9 L and range of 73 points as it made a High-Low of 12392-12319
  • NF confirmed a FA at 12319 on 15/01  and tagged the 1 ATR target comes to 12415.
  • The settlement day Roll Over point (Jan) is 12193
  • The VWAP & POC of Dec Series is 12087 & 12182 respectively.
  • The VWAP & POC of Nov Series is 11954 & 11910 respectively.
  • The VWAP & POC of Oct Series is 11461 & 11365 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 12327-12335-12356

Hypos / Estimates for the next session:

a) NF needs to sustain above 12385 for a move to 12400-415 / 12437-445 & 12463
b) Immediate support is at 12363-357 below which the auction could test 12343-333 / 12319 & 12298-290*
c) Above 12463, NF can probe higher to 12487 / 12511-515 & 12530
d) Below 12290, auction could probe lower to 12270-255 & 12234*
e) If 12530 is taken out, the auction go up to to 12550 / 12569-576 & 12600
f) Break of 12234 can trigger a move lower to 12217-210 / 12195-181 & 12160


BankNifty Jan F:  31944 [ 32105 / 31765 ]

HVNs – (31480-500) / 31830 / (31900) / (32001) / 32152 / 32250 / 32300 / (32420) / 32550-565

BNF opened lower giving yet another Drive Down as it negated the FA of 32032 and in the process confirmed a multi-day FA at 32260 and even hit the 1 ATR objective of 31883 in the opening 10 minutes itself. The auction then went on to make lows of 31810 in the IB and even attempted a RE lower in the ‘D’ period but could only tag 31765 after which it was pushed back into the IB and went on to test the selling tail of morning making a high of 31969 in the closing minutes leaving a ‘b’ shape profile on daily with the dPOC at 31832 which would be the important reference in the coming session. On the upside, we have a selling tail from 31970 to 32169 as the immediate reference.

View the MPLite chart of BNF moving away from the 4-day composite via a ‘b’ shape profile

  • The BNF Open was an Open Drive Down (OD) on low volumes
  • The day type was a Normal Variation Day – Down (NV) – ‘b’ shape profile
  • Largest volume was traded at 31832 F
  • Vwap of the session was at 31859 with volumes of 29.8 L and range of 340 points as it made a High-Low of 32105-31765
  • BNF confirmed a multi-day FA at 32260 on 14/01  and tagged the 1 ATR target of 31883. The 2 ATR objective from this FA comes to 31507.
  • BNF confirmed a FA at 32774 on 30/12 and tagged the 2 ATR target of 32142 on 03/01. This FA has not been tagged and is now positional resistance.
  • The settlement day Roll Over point (Jan) is 32180
  • The VWAP & POC of Dec Series is 31956 & 32102 respectively.
  • The VWAP & POC of Nov Series is 30699 & 31100 respectively.
  • The VWAP & POC of Oct Series is 28784 & 28415 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 31820-31832-31929

Hypos / Estimates for the next session:

a) BNF needs to sustain above 31970 for a rise to 32057 / 32123-152* & 32200
b) Immediate support is at 31900 below which the auction could test 31860-830 / 31784 & 31718
c) Above 32200, BNF can probe higher to 32260 / 32310 & 32365-380
d) Below 31718, lower levels of 31670-655 / 31585 & 31540 could be tagged
e) If 32380 is taken out, BNF can give a fresh move up to 32430 / 32490-508 & 32565*
f) Break of 31540 could trigger a move down to 31480* / 31440-425 & 31370-328

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